What happens if there is no will when a person dies?

• If there is no will when a person dies they are said to have died intestate. This means their estate will be distributed according to intestacy rules. 
• Instead of a Grant of Probate, the process is called Letters of Administration which often turns out to be slower, more complex and more expensive than if there was a valid will. 
• An Estate Advance relieves the financial pressure of administering an estate without a will.

When a person dies and there is no will, they are classified as having died intestate, meaning they haven’t provided instructions on how their estate should be distributed. 

Different to when a will exists, the estate has to follow the Rules of Intestacy. This legal framework decides who inherits what, who deals with the estate and how it is administered. 

In order to move ahead with anything, the estate must apply for what’s called the Letters of Administration. This grants the administrator legal authority to deal with the estate.

The consequence of this is that this process often takes more time as it has more details to muddle through. As a result, costs tend to be higher than when there is a valid will involved.

Many families aren’t always aware of the financial impact of this. 

Higher legal and administrative fees, the cost of tracking down beneficiaries, the lack of tax-efficient preplanning leading to a higher Inheritance Tax bill, and the potential for disputes all push up the potential price of this process.

At Provira, we know this can be financially draining, particularly when dealing with it all through grief. 

This is where our Estate Advance can help.

Our loan gives executors access to up to 50% of the net value of the estate within days, allowing you to pay off any urgent estate expenses, such as an Inheritance Tax bill, almost immediately. 

We also only charge simple interest, not compound interest, keeping your costs low, don’t charge early repayment fees and don’t ask for monthly repayments. The loan is simply repaid in full once the estate has been settled. 

We also dedicate a team member to your case from start to finish and deal with all solicitor communication directly, taking the responsibility off your plate.

Ready to start your application? Reach out to our team today. We’re here to help.

What are the rules of intestacy?

The rules of intestacy provide a legal framework that decides how an estate is distributed when there is no valid will when a person dies.

It decides the order of priority for inheritances:

1. Married or civil partner, with no children: the partner receives the entire estate
2. Married or civil partner, with children: partner receives all personal possession, a statutory amount of £322,000, plus half the remaining estate. Children split the other half equally
3. No partner, children: children inherit equally
4. No partner, no children: there is a specific order of inheritance
   • Parents
   • Siblings
   • Half-siblings
   • Grandparents
   • Aunts & Uncles
5. No traceable relatives: the estate is passed to the Crown to deal with 

Currently, unmarried partners have no automatic right to inherit, regardless of how long they’ve been together. 

Similarly, stepchildren who were not legally adopted are not entitled to inherit either. 

For children, their share of inheritance will be put away in a trust until they reach the age of 18.

Though well structured, as the decisions are based on law, not on what the deceased would have wanted, it could end up being different to what they would have wanted.

Do I need probate if there is no will?

Yes, you do. If there is no will, the probate process still goes ahead and the Grant of Probate is replaced with Letters of Administration. 

It still serves the same purpose, giving the administrator legal authority to manage and distribute the estate. 

The person responsible for applying is often the most closely related relative, commonly the spouse or partner. 

When there’s no spouse or partner able to do it, there’s an order of priority for who can apply.

Similarly, as there’s no will, there’s also no named executor. The role of administering the estate falls to whoever is most entitled, also under intestacy rules.

If there is no will when a person dies, probate doesn’t disappear. Instead the process leaves more room for disputes, confusion and time spent figuring out how best to deal with it. 

And this time can become costly. From paying off Inheritance Tax within six months to ongoing legal and administrative fees, it can all start to add up.

Luckily, our Estate Advance can help.

Our loan provides executors, or in this case, administrators, with up to 50% of the net value of the estate within days, covering all urgent costs and helping to move the process forwards.

We know the probate process can be extremely confusing, so we keep our loan terms simple. You:

• Only pay simple interest, not compound interest, saving you money in the long run.
• Will never be asked for early repayment fees.
• Don’t have to pay any monthly repayments. We are simply repaid in full once the estate has been settled.
• Hand over solicitor communications and HMRC payments to us for the duration of the loan.
• Face no personal liability, the loan is secured entirely against the estate.

Plus, a member of our compassionate team will be dedicated to your case to guide you through it from start to finish.

Get started on your application by reaching out to our team today.

What are the costs if there is no will when a person dies?

If there is no will when a person dies, it usually means the administration process will end up being longer and more complex. 

The financial impact of this can be significant when the cost of professional fees and ongoing maintenance start to add up.

The administration of an intestate estate can take nine months or more to complete. Often it takes much longer. Every month that passes during this process accumulates more estate-related costs.

These include:

Property holding costs

For estates with property, mortgage payments, council tax, insurance, utilities and general upkeep costs have to be paid throughout the probate process.

Also, property can’t be sold until Letters of Administration are granted so estates can find themselves financially stretched with having to cover all of these.

Professional fees

Solicitor fees tend to be slightly higher for estates without a will as it can take time to track down beneficiaries and get everything in order. If beneficiaries are particularly hard to find, administrators may need to use additional specialist services to locate them.

Disputes 

When a person plans their estate, they structure how it is going to be distributed in their will. Without a will, it’s more likely to see disputes between relatives as there are no clear guidelines as to how the estate should be distributed. 

Missed benefits

Currently, if a pension holder dies before 75, there’s a two-year window after death in which beneficiaries can claim pension benefits tax-free. If the probate process drags on past this cut off, they may lose their tax-free status, costing the estate more in the long run.

If there is no will when a person dies, the combination of the maintenance costs associated with an estate and the longer length of time it takes to administer it, means the value of the estate can significantly drop before beneficiaries receive a single penny.

How can Provira help if there is no will when a person dies?

If there is no will when a person dies, the probate process becomes complex, time consuming, and expensive. 

This often leaves executors and beneficiaries in limbo for longer than they’d like.

From the costs of property, legal fees and maintenance, and the six-month deadline of Inheritance Tax, to the length of time wading through the more complicated legal process, it becomes both a financially and emotionally draining process to be a part of. 

Plus, when costs are urgent and cash is tied up in the estate assets, it can feel like you’ve nowhere to turn.

This is where our Estate Advance can help.

Designed for executors and administrators who are dealing with complex estates, it ensures the financial pressure doesn’t add to an already difficult time.

Through our loan, we provide executors with access to up to 50% of the net value of the estate within days. 

We also:

• Only charge simple interest, not compound interest, so you’re not paying interest on top of interest
• Don’t charge early repayment fees if things wrap up sooner than expected
• Don’t ask for monthly repayments. We’re simply repaid in full once the estate has been settled.
• Don’t need personal liability. The loan is secured entirely against the estate. 
• Plus, a dedicated member of our compassionate team will be on hand to guide you through it from start to finish.

Ready to get started? Get in touch today