It's time to talk about wills.

You might not like talking about wills, but it's worth it. After all, making a will is the only way to decide what happens to your assets after you pass away.

Your will sets out, in no uncertain terms, which of your loved ones receive portions of inheritance. It also lets you determine exactly how large these portions will be.

Nice and simple, right?

But if you pass away without making a will – or your will is deemed invalid – then you're said to have died "intestate". This makes things a little more complicated…

What happens when you die intestate?

When a person dies intestate, the state decides how their assets should be shared out. This process is determined by a set of rules called the "rules of intestacy".

The problem? Since the person left no instructions for the management of their estate, assets might be shared out in a way that's contrary to their wishes. In many cases, an inheritance can only be allocated to a spouse or close relations.

Exact outcomes differ depending on the person's circumstances. Let's look at a few scenarios and see how the rules of intestacy apply.

What if you have a partner and children?

As of now, if you have an estate worth £270,000 or less, it will immediately transfer to your surviving partner. If your estate is worth more than this, your partner will receive the first £270,000, as well as half of the remaining amount. The other half will be shared equally between your children.

Bear in mind that we're using "partner" to mean a married or civil partner. Unmarried partners aren't entitled to anything under the rules of intestacy.

An example:

Tina passed away with an estate worth £590,000.

Her spouse, Javad, inherits the first £270,000. This leaves £320,000.

Javad also gets half of this £320,000, which works out at £160,000. The remaining £160,000 is shared between the couple's four children, who get £40,000 each.

What if you have no partner but have children?

If you're not married or in a civil partnership, but you do have children, then your children will each receive an equal share of your estate.

Unfortunately, the rules of intestacy don't consider stepchildren when allocating shares, as they're not considered to be legally related to you. Adopted children are considered legal relatives, though, so if you've adopted your stepchildren, they will receive shares.

If you have no surviving children, then the same process will occur for any grandchildren.

An example:

Eric was a widower with three children. When he passed away, his estate was worth £69,000.

Each of Eric's children receives an equal share of his estate – £23,000.

What if you have no partners or children?

If you have no living partner, children or grandchildren, then your estate is inherited by your closest living relative, or relatives. The state will work through a list of your next of kin in a specific order of priority until a living relative is found. This list goes as so:

• Parents of the deceased.
• Brothers and sisters of the deceased.
• Half brothers and sisters of the deceased.
• Grandparents of the deceased.
• Aunts and uncles of the deceased.
• Surviving children of the aunts or uncles, if they're deceased.

An example:

Yan died with an estate worth £120,000. She had no living parents, siblings or half- siblings.

She did, however, have two living maternal grandparents and one living paternal grandparent. Each of these three relatives receives an equal share of £120,000, which works out at £40,000.

Who cannot inherit

• Partners who are not in a registered marriage or civil partnership (often called "common-law" partners)
• Any relations from marriage (in-laws)
• Step-children who haven't been adopted
• Friends
• Carers

What if you have no living relatives?

If no living relatives can be found, your estate will pass to the Crown. In effect, this means that the state keeps hold of your inheritance until a living relative comes forward.

If this happens, your estate is said to be bona vacantia. This is Latin for "vacant goods".

The government keeps a list of bona vacantia estates that haven't been claimed. If you think you might be related to someone with an unclaimed estate, you can download the list here.

Can the rules of intestacy be challenged?

The rules of intestacy can be challenged. But fair warning: it might get messy.

You might want to arrange things so people who wouldn't otherwise inherit – like friends or carers – get a share of the estate. Or you might want to change the amounts that certain relatives receive.

However, every relative who qualifies for inheritance must agree to the new arrangements. As you might imagine, this can cause problems. If you want to challenge the rules of intestacy, it's a good idea to seek legal advice.

Would you like help writing a will? Or perhaps you want advice about the rules of intestacy? Our inheritance lawyers have years of experience helping people plan for the future and receive the inheritance they deserve. Get in touch for a free initial consultation.