Category: Probate, Wills and Trusts

If someone passes away in the UK without having made a valid Will, this is known as dying “intestate” and can lead to unintended consequences for your family and loved ones. In these cases, your “estate”, which is everything you own, including money, properties, and any other possessions, would be distributed in accordance with the rules of intestacy, and not your own wishes.

So, this is what happens if you pass away without making a Will in the UK:

1. Who will Inherit your Estate?

The rules of intestacy will decide who inherits what, and those rules follow a strict legal order. The outcome will depend on your family situation at the time of your death:

a. if you are married or in a civil partnership with no Will:
and have children:
your spouse or civil partner will inherit:
The first £322,000 of your estate;
All of your personal possessions; and
Half of the remainder of your estate.
The other half would be divided equally between your children.
And have no children:
your spouse or civil partner would inherit everything.

It is important to note that even if you have been living with someone/cohabiting for years, unmarried partners are not entitled to anything under intestacy laws.

b. if you are unmarried and have children:
Your estate would be divided between your children in equal shares;
If any one of your children has died before you, leaving a child or children, their share will pass to that child or children (i.e. your grandchildren) in equal shares.

c. if you are unmarried with no children:
Your estate would pass in the following order:
To your parents (equally if both still alive);
To your siblings or, if one has died before you, then to their children equally;
To any half-siblings;
To grandparents;
To aunts and uncles (and their children if predeceased);
To half aunts and uncles.

If no relatives can be found, the estate will go to the Crown under a rule called “bona vacantia”.

2. Problems that could arise if you do not make a Will…

Unintended beneficiaries: Unmarried partners or close friends will get nothing and estranged relatives may inherit.
Delays and legal costs: Without a Will the probate process will very likely take much longer leading to more legal costs.
No guardianship instructions: If you pass away leaving children under the age of 18, there would be no legal guidance about who you would wish to care for them.
Tax inefficiency: A Will could help minimise inheritance tax through estate planning.
Family disputes: No Will means no record of your wishes and ambiguity could lead to arguments, legal battles, or emotional strain on your family and loved ones.

3. Who would deal with the Administration of your Estate?
Without a Will appointing your choice of Executors, the Court would have to appoint someone to deal with your estate. This person is called an administrator rather than an Executor.  In order to be legally authorised to manage the administration of your estate, this is usually someone who is a close relative, who would have to apply for what is called “letters of administration” rather than Probate.

4. What about jointly owned Assets?
Joint bank accounts: Usually these would pass automatically to the surviving account holder, depending on the type of account and which bank is involved.

Jointly owned property:
If your house is held as what is known as “joint tenants”, your property  will pass automatically to the surviving  joint owner.
If your house is held as what is known as “tenants in common”, your share of the property will form part of your estate and will be dealt with under intestacy rules.

5. How to avoid these issues?
The best way to make sure that all your wishes are followed is to:

Make a Will: It doesn’t have to be complex or expensive.
Review your Will regularly: Especially after a major life event, for example getting married, divorce, or having children.
Seek legal advice: Especially if your circumstances are complicated for example if you are a blended family or have overseas assets).

So, passing away without having made a Will in the UK can leave your family and loved ones facing legal complexities, a lot of stress, and potentially unfair outcomes. A Will is not just a document; it is security for those you leave behind and peace of mind for yourself.

If you have not made a Will yet, now would be a good time to consider it. It is certainly one of the most important steps in protecting your wishes for your family’s future.

If you would like to discuss how Lawson West can help, please give our friendly team a call on 0116 212 1000 or 01858 445 480 or complete our Contact Us form.

As more of our financial, personal and social lives move online, digital assets have become an increasingly important part of estate administration. When someone dies, executors in the UK must now deal not only with physical possessions and traditional bank accounts but also online accounts, digital wallets, cloud storage and social-media profiles. Understanding how to handle these digital assets in probate is essential to ensure the estate is administered lawfully and in accordance with your loved one’s wishes.

Digital assets are broadly defined as anything of value or significance that exists electronically. This includes obvious items such as online banking and investment accounts, PayPal balances and cryptocurrency holdings, but it also extends to cloud-stored photos, email accounts, loyalty points, personal websites and digital business assets. Many people also have substantial online identities across platforms like Facebook, Instagram and X, which may need to be closed, memorialised or managed after death.

Considerations for Executors

In the UK, digital assets that hold value form part of the estate and must be included in the probate process. Executors must handle these assets carefully, particularly because online service providers have strict privacy rules and terms of service. Most providers will only engage once they receive evidence such as a death certificate, the Will and, where required, a Grant of Probate.

Identifying Digital Assets

The first challenge is simply locating the deceased’s digital presence. Executors may need to review devices, emails and paperwork to determine what online accounts exist. Family members can often provide valuable information about services used by the deceased.

Key places to check include:

• Email accounts for subscription alerts and statements
• Password managers or securely stored account lists
• Mobile phones, laptops and tablets
• Cryptocurrency wallets or hardware devices

Valuing and Securing Digital Assets

Once the digital estate is identified, executors must determine which assets have financial value and need to be reported for probate. Cryptocurrency requires special attention: access depends on private keys or seed phrases, and without them the asset may be lost permanently. The value of cryptocurrency must be recorded at the date of death for inheritance tax purposes. Online business assets, domain names and digital wallet balances may also need professional valuation.

Executors should take steps to secure accounts and prevent data loss. This may include contacting service providers, safeguarding devices and ensuring that valuable files or sentimental photos are preserved.

Distributing or Closing Accounts

After valuation, digital assets can be transferred or closed in line with the Will or intestacy rules. Financial assets may be cashed out or moved, while personal items such as photos, videos and documents can be shared with beneficiaries. Social-media accounts are usually either memorialised or deleted depending on family preference and platform policies.

Planning Ahead

Digital estate planning can make the probate process significantly smoother. Individuals should consider keeping an updated list of online accounts in a secure location and using tools such as Apple Digital Legacy, Google’s Inactive Account Manager or Facebook’s Legacy Contact. Clear instructions can help prevent the loss of valuable or sentimental items.

Handling digital assets in probate is now a standard part of UK estate administration. With careful planning and consideration, families can ensure both financial and personal digital property are managed properly and respectfully.

If you are an executor and would like to discuss how Lawson West can help, please give our friendly team a call on 0116 212 1000 or 01858 445 480 or complete our Contact Us form.

Created by AI and checked by a qualified solicitor

Passing wealth to family is a goal many people share, yet the process is often clouded by misconception. Some believe that setting up a trust automatically saves tax, while others assume gifting is always simple and tax free. Both gifting and trusts can be effective tools in passing on wealth – the right choice depends on your priorities and circumstances. 

Outright Gifting

If your aim is to reduce the size of your estate and you are comfortable with the thought of relinquishing control, an outright gift is often the most straightforward option. However, it is worth considering whether reducing the value of your estate is necessary at all; it may already fall below the inheritance tax threshold once allowances are applied.

• How it works: Imagine a parent gives their child £50,000 towards a house deposit. If they survive seven years from making the gift, it will no longer be considered part of their estate for inheritance tax purposes. If, however, they die within seven years, then the gift may be subject to inheritance tax.
• Exemptions: Smaller gifts can be made tax free. For example, you can gift up to £3,000 per year or give £250 per person annually. Over time, these exemptions can add up.
• Things to watch: Gifting assets such as property or shares may trigger capital gains tax at the point of transfer. Once gifted, the asset is no longer yours – the recipient has full control to use, sell or transfer it. You need to consider whether you are comfortable with the thought of relinquishing control of the asset.
• Common mistake: If you continue to benefit from a gifted asset (such as living rent free in a house you have given away) then HMRC will still treat the asset as part of your estate for inheritance tax purposes.

Trusts

Trusts are more structured and can be valuable if you want to support family members while retaining some safeguards.

• Definition: A trust is a legal arrangement where trustees hold and manage assets for the benefit of chosen beneficiaries. Different types of trust exist and choosing the right one depends on your circumstances and your overall objectives.
• Control: You provide guidance on how and when assets are accessed – for example,  releasing funds only when a beneficiary reaches a certain age or taking into account a beneficiaries’ circumstances at the time of releasing the assets.
• Protection: Trusts can help shield assets from risks like divorce, bankruptcy or poor financial decisions by beneficiaries.
• Complexity: Trusts require ongoing management which includes reporting obligations and navigating tax rules. There are also very strict duties that your Trustees will be bound by.
• Tax: Assets in trust are not automatically exempt from inheritance tax. Transfers into most trusts are treated as chargeable lifetime transfers and may attract an immediate tax charge if available thresholds are exceeded. Trusts may also face ten‑year charges, exit charges and income / capital gains tax charges. You need to consider the extent of any tax liability that may arise and how this would be settled.  
• Common mistake: Retaining a benefit (such as income or capital) from a trust you have set up will result in HMRC treating the assets as though they still belong to you and may have other tax considerations.
• Uses: Trusts are typically suited to larger sums or situations where retaining control is essential. Consider whether retaining control is truly necessary, or if it simply adds unnecessary complexity.

A Hybrid Approach

Many families find that a combination of gifting and trusts works best — gifting smaller amounts directly while placing larger sums or property into trust.

Final Thoughts

Passing on wealth can be achieved through outright gifts, trusts or a combination of both. The right choice depends on your circumstances, your desired level of control and the tax implications. Professional advice can help you identify the most effective approach for your circumstances.

If you would benefit from guidance on whether gifting, trusts or a combination of both is right for you, please give our friendly team a call on 0116 212 1000 or 01858 445 480 or complete our Contact Us form.

Planning for the long-term financial security of a disabled loved one requires careful thought and specialist legal guidance. One of the most effective ways to protect and manage assets for a disabled beneficiary is through a trust specifically designed for their needs. These trusts can provide financial stability, preserve access to means-tested benefits, and ensure that funds are managed responsibly throughout the beneficiary’s lifetime.

This article explains how trusts for disabled beneficiaries work whether they are set up during your lifetime or created on your death through your Will, the types available, and the key considerations for families.

Why Consider a Trust for a Disabled Beneficiary

Families often use trusts for several important reasons:

• Protecting means-tested benefits: Receiving an inheritance outright may jeopardise a disabled person’s entitlement to certain benefits. A properly structured trust can prevent this.
• Ensuring long-term financial management: Trustees are appointed to oversee and manage assets, providing consistency and safeguarding the beneficiary’s interests.
• Safeguarding vulnerable individuals: Trusts can protect beneficiaries who may be unable to manage money independently or who may be vulnerable to financial abuse.
• Providing flexibility: Trusts can be tailored to meet the beneficiary’s needs, giving Trustees the discretion to adapt to changing circumstances.

Types of Trusts for Disabled Beneficiaries

Trusts can be established either during your lifetime (lifetime trusts) or on death through your Will (Will trusts). The same types of trusts are generally available in both situations.

1. Disabled Person’s Trust (Lifetime or Will Trust)

A Disabled Person’s Trust is specifically recognised under UK tax law and can offer significant tax advantages where the beneficiary meets the statutory definition of disability.

Key features include:

• Assets must be held primarily for the benefit of the disabled person.
• Trustees have discretion over how funds are applied.
• Income and capital gains may be taxed more favourably than in a standard discretionary trust.
• The trust typically falls outside the usual Inheritance Tax “relevant property” regime.

Because this type of trust relies on the beneficiary meeting strict legal criteria, specialist advice is essential.

2. Discretionary Trust (Lifetime or Will Trust)

If the disabled person does not meet the criteria for a Disabled Person’s Trust, a Discretionary Trust may be more appropriate.

Key features include:

• Trustees control how and when funds are distributed.
• Multiple beneficiaries can be included.
• With appropriate drafting, the trust can still protect entitlement to means-tested benefits.
• It is generally subject to the standard Inheritance Tax regime.

Discretionary trusts offer flexibility but require careful planning to avoid unintended financial or tax implications.

Tax Considerations

Trusts for disabled beneficiaries can offer significant tax advantages, but the rules are detailed and specialist advice is recommended.

Key points include:

• Inheritance Tax (IHT): Disabled Person’s Trusts may be exempt from 10-year charges and exit charges.
• Income Tax: Income may be taxed at the beneficiary’s rate rather than the higher trust rate.
• Capital Gains Tax (CGT): Certain reliefs may reduce or defer tax liabilities.

How a Solicitor Can Help

Creating a trust for a disabled beneficiary involves legal, financial, and practical considerations. A specialist solicitor can:

• Advise on the most suitable type of trust
• Draft the trust deed or Will provisions
• Explain the tax implications of each option
• Assist Trustees with the ongoing management of the trust
• Ensure the trust structure supports the family’s long-term goals

Conclusion

Trusts for disabled beneficiaries are powerful planning tools that provide long-term security, stability, and peace of mind. With the right structure and expert advice, families can ensure that their loved one is supported throughout their lifetime without compromising financial independence or access to essential benefits.

If you would like to discuss setting up a trust for a disabled beneficiary, or need help managing an existing trust, please contact our friendly team on 0116 212 1000 or 01858 445 480, or complete our Contact Us form.