Many people wonder what will happen to their property when they die and may also be unsure who their legal Next of Kin will be. There is often confusion over who is entitled to the estate and responsible for paying the funeral expenses.

Government legislation dictates in England and Wales who will inherit if no Will has been left. These guidelines are referred to as the Rules of Intestacy or Intestacy Rules.

Under the Rules of Intestacy, the Next of Kin is the closest blood relative of the deceased. Below is a list of classes of relatives and the order of priority in which they inherit.

Spouse/Civil Partner

Children

Grandchildren

Parents

Brothers/Sisters

Nephews/Nieces

Grandparents

Aunties/Uncles

Cousins

If there is more than one living relative in any class, they are deemed to be equal beneficiaries (it is not the case that the eldest is the next of kin or that sons take precedence) and the estate is split between them. Relatives lower down the priority list only inherit in the absence of any higher class of beneficiary.

If there is a surviving spouse or civil partner they are entitled to the entire estate if it is under £250,000. If the estate is worth over £250,000 and there are children or grandchildren the spouse will receive the first £250,000 and then a life interest in half the remainder. The other half will be distributed amongst the children or grandchildren.

When there are no children or grandchildren and the estate is worth over £450,000, the spouse will receive the first £450,000 of the estate and then half of the remainder. The rest will pass to the parents or, if they predeceased the intestate, brothers/sisters or nieces/nephews.

It is important to note that the following people do not inherit under the Rules of Intestacy:

Unmarried partners

Relations by marriage

Close friends

Carers

When defining the estate for the purposes of distribution under the Intestacy Rules, only the deceased’s sole assets are taken into account. Any assets held in joint names are disregarded as they will pass by survivorship to the joint holder.