If you don't make a Will

Intestacy

If you don't make a Will then on your death you will have died intestate and your possessions will be distributed according to the following rules:

1. If the value of your estate is more than £5,000, someone in your family has to apply to the Probate Courts to sort out your estate, deal with any debts you had when you died, pay any inheritance tax that may be due and distribute your assets in accordance with the Rules of Intestacy, shown below. The process can take months, sometimes years, to complete, can give rise to family disputes and benefit people who you would not wish to see inherit.

2. Many people mistakenly think that their estate will automatically go to their spouse / civil partner when they die. This is not necessarily the case and depends on the deceased person’s circumstances as shown below:

If the deceased was married or in a civil partnership with an estate worth £250,000 (£125,000 prior to 9th February 2009) or less:

Everything goes to the husband, wife or civil partner.

If the deceased was married or in a civil partnership with an estate worth over £250,000 (£125,000 prior to 9th February 2009):

The husband, wife or civil partner won't automatically get everything although they will receive:

personal items, such as household articles and cars, but nothing used for business purposes.
£250,000 (£125,000 prior to 9th February 2009) free of tax, £450,000 (£200,000 prior to 9th February 2009 if there are no children.
a life interest in half of the rest of the estate (on his or her death this will pass to the children or as immediately below).

The rest of the estate will be shared by the following:

Children (or if none, grandchildren) will get an equal share.
If there are no children or grandchildren, surviving parents will get a share.
If there are no children, grandchildren or surviving parents, any brothers and sisters (who shared the same two parents as the deceased) will get a share (or their children if they died while the deceased was still alive).
If the deceased has none of the above, the husband, wife or registered civil partner will get everything.

If there is no surviving spouse/civil partner the estate is distributed as follows:

To surviving children in equal shares (or to their children if they died while the deceased was still alive).
If there are no children, to parents (equally, if both alive).
If there are no surviving parents, to brothers and sisters (who shared the same two parents as the deceased), or to their children if they died while the deceased was still alive.
If there are no brothers or sisters then to half brothers or sisters (or to their children if they died while the deceased was still alive).
If none of the above then to grandparents (equally if more than one).
If there are no grandparents to aunts and uncles (or their children if they died while the deceased was still alive).
If none of the above, then to half uncles or aunts (or their children if they died while the deceased was still alive).
To the Crown if there are none of the above.

Visit http://www.hmrc.gov.uk/cto/customerguide/page14-1.htm