My second cousin lives in a very big house in the country. He inherited from his father, who specified in his will that he would like him to inherit it because, traditionally, the recipients of this house were all male.
He has two sisters (one older, one younger), both of whom did not even get a look-in because they’re female.
I always felt this was rather unfair. But then I thought – would it actually be fairer if the eldest child inherited the house just because of their age? Probably not. Less sexist, perhaps, but more ageist.
But the question of who should rightfully inherit, and the historically sexist process which often still occurs in modern times, is not the topic of today’s essay.
My second cousin also happens to be an auctioneer, and one of the specialisms of his firm is going into big posh houses where the owner has died and either did not have a will, or had no one to pass on their possessions and assets to.
The auction house goes in and views all the antiques or other valuable possessions belonging to the deceased (often expensive artworks or furniture) and sells them for eye-watering prices.
I am always surprised when I hear about yet another big house that he’s attended to value the antiques therein. There can’t be that many people living in huge valuable properties who do not leave them to anyone, surely?
But it appears there are.
Recent research by TWM Solicitors found the number of estates where the deceased has left behind assets but not a will – commonly referred to as ‘intestate estates’ – has risen by 17% to over 51,140 in the past year, up from 43,600 the previous year.
Estates without a valid will reach five-year high
Obviously, there are some instances in which the person has died without anyone to pass their assets on to, in which case these assets go to the government. But what happens in cases where they have failed to sort a will?
If this happens, and the person owned valuable assets – such as property, shares, or bank accounts – the court must issue a grant of letters of administration.
This appoints someone to manage the estate and distribute the assets according to strict intestacy rules (something of which most financial advisers will be aware, but many clients may not).
Under these rules, if the deceased was married or in a civil partnership with children, their spouse or civil partner would inherit all personal belongings, the first £322,000 of their assets, plus half of the remaining estate.
The rest is then divided equally between the children.
If there is no surviving spouse or children, a strict hierarchy of relatives is followed: 1) parents (equally if both are alive), 2) siblings (or their children if a sibling has died), 3) half-siblings (or their children), 4) grandparents, 5) aunts and uncles (or their children), 6) half-aunts and half-uncles (or their children).
This may bear little to no resemblance to the deceased’s personal wishes.
It seems, then, that being married solves most intestacy issues (as long as you wish for your spouse to inherit your belongings – which I imagine is the case for most married couples).
This is an out-of-date system based on archaic views, but it is useful to know.
I’m not married. However, luckily I don’t have any assets. My most valuable possession is my £2,500 car (and my pension, which is covered by beneficiary nominations, and Lifetime Isa, which would presumably cancel out my debt).
I worked out that to inherit the house currently belonging to my second cousin I would have to kill every single member of my family on my mother’s side. This is not something I am willing to do, for obvious reasons.
Not to mention the fact that I wouldn’t even want to live in that house because it’s far too much upkeep.
Anyway, back to the point. If, unlike me, someone does have assets and they are not married to or in a civil partnership with their current life partner, their assets on death could end up in all sorts of places.
This includes passing to estranged spouses, distant relatives the deceased may never have known, or even passing the money to the crown (i.e. the government) if no surviving relatives can be traced.
Advisers warned of critical need for wills and LPAs
Understandbly, most people do not want to consider or think about their own demise. I know I don’t.
But neglecting to write a will if you’re in a situation where your assets will not automatically pass to the people you want them to can be hugely problematic for the people left behind – both legally and emotionally.
David Lunn, managing associate in the private client team at TWM Solicitors, illustrates the unintended consequences.
He says to imagine a childless, married couple, each one with a sibling.
If they both die without wills, who dies first determines which sibling inherits everything on the second death.
If the husband dies first, the wife inherits the estate – and upon her death, her sibling receives everything.
If she dies first, the husband’s sibling inherits instead.
Lunn says a well-drafted will could have ensured both siblings were remembered, not just the “lucky” one.
The number of grants of letters of administration rose sharply in the last quarter – up 27% to 16,090, from 12,680 the previous quarter – reaching a five-year high.
And TWM Solicitors warns that intestacy cases are likely to rise as more individuals die owning property, which typically requires a grant of letters of administration.
I plan to get married in the next couple of years (my boyfriend and I have talked about it, I’m not just assuming).
I also plan to buy a house in the next six years, by the time I turn 40, preferably with my boyfriend/fiancé/husband – whichever he is at that time. So, in the future I will have some assets.
I fully plan to write my will, so that my possessions go to who I want them to go to.
