Distant relatives cash in

The death of a 70-year-old recluse who had no immediate known relatives and who left an estate worth £250,000 on his death has recently hit the headlines. The deceased had no wife, children or siblings and it was therefore necessary to find more distant blood relatives to distribute his estate.

Someone who dies without leaving a valid will is said to die 'intestate'. Their assets will be divided in accordance with a strict list of entitlement called the 'intestacy rules'. If someone dies leaving a spouse, civil partner and/or children, their estate will pass to these beneficiaries. However, in the absence of these beneficiaries, it is necessary to work down the list of entitlement to establish who is entitled to inherit.

The list follows the bloodline of the deceased and once a beneficiary on the list has been identified, it is no longer necessary to look further down the list. After spouse, civil partner and children, the list of entitlement is parents, brothers and sisters (or their descendants), half-brothers and sisters (or their descendants), grandparents, aunts and uncles (or their descendants) and half aunts and uncles (or their descendants). If no one can be found, the assets of the deceased passed to the Crown.

In the case mentioned above, it was reported that 31 relatives took a share of the estate some of whom lived as far away as Australia. Obviously, the estate will have met the cost of locating 31 relatives scattered across the globe.

Avoiding the strict provisions of the intestacy rules is easy. Someone simply needs to make a will. In this way, a person can specify their executors, ensure that named individuals get specific gifts such as jewellery or family heirlooms and can ensure that the people whom they want to inherit their estate can benefit.

It is possible for someone to make a homemade will; however, this is not advisable. There are strict requirements regarding signing a will which, if not met, could render the will invalid and take you straight back to the intestacy rules. It is also important to think about 'backup' beneficiaries who can be specified in the will. Having a will drawn up by a law firm is often far cheaper than people would expect and are professionally drawn will can give peace of mind which of course, can be priceless.

To discuss this or any other private client matter, contact us.