The intestacy laws explained

Lawpack on May 5, 2020

What making a Will does for you

If you don’t make a Will, you cannot control who will inherit your property after your death. Should you die without making a Will, your property will be distributed according to intestacy law. And this distribution may not match your personal wishes. By making a Will you can determine precisely who will inherit your property and let your loved ones know that you have considered their needs.

Equally important, you can determine who will handle your affairs after your death and who will act as guardian for any minor children you have if they are left without a surviving parent. You can also use your Will to express your preferences for burial or cremation and for donating organs or your entire body for medical purposes. In addition, making a Will gives you the opportunity of reducing your Inheritance Tax liability. This is particularly important if you have substantial assets.

What happens if you have not made a Will: Intestacy Explained?

If you die without making a Will, or if your Will is not legally valid, you die ‘intestate’. This means that the management of your affairs is then placed in the hands of administrators who are appointed by the court and who are likely to be close members of your family. The administrators must distribute your estate according to the rules of intestacy. There is no opportunity for them to try and ‘guess’ your wishes.

The rules of intestacy are complex, but, broadly speaking, the bulk of your estate will go to your spouse (or registered civil partner) or, if none, to your children (whether or not they are adults) and, if none, to other specified blood relatives.

The effect of the rules depends partly on whether you have children and your marital status. If you’re married with no children, your surviving spouse/civil partner will inherit everything.]

But if you’re married with children, when you die without a Will less than you expect may go to your spouse. Your surviving spouse will receive £270,000, plus your personal belongings, and then half of the estate automatically. Your children will then inherit the remaining half share of the estate(or on trust until they reach the age of 18).

The rules for spouses set out here are the same as the rules for those gay couples who register as civil partners.

But if you’re not married and living together the intestacy laws do not recognise a common law husband or wife. Cohabitation does not have the same ‘rights’ as marriage. So it’s particularly important to make a Will if you’re not married to your partner. Under the law of intestacy, your unmarried partner has no automatic right to any part of your estate and so they will have to try and establish a claim under the Inheritance (Provision for Family and Dependants) Act 1975 which can be costly, time consuming and far from a guaranteed success.

Find out more about cohabitation and the intestacy laws here.

It’s also possible to die partially intestate. This occurs if you fail to deal with all of your property in your Will or if someone who was due to inherit in your Will dies before you or if you divorce and your ex-spouse’s legacy becomes invalid as a result. It’s therefore important to keep your Will up to date.

Make your Will with Lawpack’s bestselling DIY Will Kit.

When you should make a Will again

Once you’ve written your Will, don’t just forget about it. Changes to your circumstances (e.g. marriage, divorce, having a child or moving house) can make parts of the Will invalid or unfair and open to a successful claim under the Inheritance Act. You should therefore review your Will regularly to reflect any major life changes, ideally every year.

Find out more about life events that can affect how you make a Will here.

8 reasons why you should be making a Will today

Lawpack on April 30, 2020

Wills – Your Questions Answered

An at-a-glance guide to making a Will, and the risks you run if you haven’t made a Will.

1. If you don’t make a will, you cannot control who will inherit your money and property.

If you die without making a Will, your property will be distributed according to law (the law of ‘intestacy’), which is likely to be against your personal wishes and the people you want to inherit your possessions may not benefit. By making a Will, you can determine precisely who will inherit your property and let your loved ones know that you have considered their needs.

The law of intestacy is complex, but, broadly speaking, the bulk of your estate will go to your spouse (including a registered civil partner) or, if none, to your children (whether or not they are adults) and, if none, to other blood relatives.

The effect of the rules depends partly on whether you have children and your marital status. If you’re married with no children, your surviving spouse/civil partner will inherit everything.

But if you’re married with children, when you die without a Will less than you expect may go to your spouse. Your surviving spouse will receive £250,000, plus your personal belongings, and then half of the estate automatically. Your children will then inherit the remaining half share of the estate (or on trust until they reach the age of 18).

So it’s always prudent to have a valid will rather than rely on the intestacy rules.

Find out the laws on intestacy here.

2. If you’re not married and haven’t made a Will, your partner may receive nothing.

If you’re not married but are living with your partner and you want them to inherit your estate, it’s particularly important that you make a will. This is because the rules of intestacy make no provision for cohabitation or unmarried partners (other than registered civil partners). If you died without making a Will, your partner may not be legally entitled to anything from your estate.

Find out about the cohabitation risk you take if you’re part of an unmarried couple and haven’t made a will.

3. By making a Will you can determine who will handle your affairs after your death.

If you die without making a Will, you die ‘intestate’. This means that the management of your affairs is then placed in the hands of administrators who are appointed by the court. The administrators distribute your estate according to the rules of intestacy (see above).

4. By making a Will you can name a guardian for your children.

If you have minor children, you can name a guardian to care for them in the event of them being left without any parents. Since a guardian takes the place of a parent, making a will gives you the option of choosing someone you believe will offer the best care for your children if you’re not around.

5. It’s important to make a new Will if you get married or divorced.

Once you have made your Will, changes to your circumstances (e.g. marriage, separation, divorce, having a child or moving house) can make parts of the Will invalid or unfair and open to a successful claim under the Inheritance Act. You should, therefore, review your Will regularly to reflect any major life changes, preferably every five years.

Find out why you should make a Will if you’re getting divorced.

6. You can save Inheritance Tax.

Making a Will gives you the opportunity of saving Inheritance Tax liability. This is particularly important if you have substantial assets.

Find out more about Inheritance Tax here.

7. You must check your Will regularly.

It’s also possible to die partially intestate. This occurs if you fail to deal with all of your property in your Will or if a particular someone who was due to inherit in your Will dies before you or if you divorce and your ex-spouse’s legacy becomes invalid as a result. It’s therefore important to keep your Will up to date.

Is it time you updated your Will? You can make a Will with Lawpack today.

8. You can express your preferences for what happens after your death.

By making a will, you can express your preferences for burial or cremation and for donating organs or your entire body for medical purposes.

You can find out more about how you can protect your loved ones by making a Will here, or you can stop worrying and make a Will today here.

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Life events: when you need to make a new Will

Lawpack on April 29, 2020

There are many life events that occur, which mean that you need to be write a Will. Here is our guide to when is the best time to be thinking about making a new Will.

Changes in your family

You should make a Will, for example, when a baby is born, one of your children becomes 18 (or perhaps some significant later age), or there is a death in the family.

Marriage

This event automatically revokes a previous Will, unless your Will expressly states that it’s made in contemplation of your forthcoming marriage. It’s always safer to write a new will once you’ve got married.

Civil partnership

Registering a civil partnership has the same effect as marriage, so you need to make a new Will.

Divorce

Unlike marriage, a divorce doesn’t revoke a previous Will. But if your former spouse is named as a beneficiary, then upon divorce they will cease to be a beneficiary or receive a gift, unless your Will expressly states that the gift should still take effect if you divorce. If your former spouse is named as executor in your Will, then upon divorce they will no longer be allowed to act as executor or obtain probate of your Will. It’s best to make a new will whenever you get divorced.

You can find out more about why you should make a Will if you’re getting divorced here.

Dissolution of a civil partnership

The dissolution of a civil partnership has the same effect as a divorce and, again, you should write a Will.

Separation

This event doesn’t have the effect on a Will which a divorce has, so it’s best to review the will as soon as separation occurs.

Changes in your financial circumstances

You may have recently acquired assets which you would like to give to particular beneficiaries, or perhaps, due to hard times, your estate may have become insufficient to provide for the legacies you have made. Again, this is a good time to make a new will.

Changes in taxation

If your estate is large enough (or becomes large enough) to attract tax, new taxes or reliefs, or changes in the rates, may call for you to make a new will.

Going to live abroad

It’s normally desirable to make a Will in the country where you reside to simplify the administration of your estate. It may also be helpful if you need to establish a change of domicile. Local advice should be sought.

In any case, it’s always a good idea to review your Will at least every year, so that it’s always up to date.

You can find out more about why you should be making a Will here, or you can stop worrying and write a Will today here.

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What happens if you haven’t made a Will

Lawpack on April 29, 2020

If you die without making a Will, the government effectively makes a Will for you.

Making a Will offers you the peace of mind that your money and possessions will be distributed according to your wishes. If you have not made a Will , your estate will be distributed according to our intestacy laws.

Find out how our intestacy laws work, and discover why they may not correspond to your wishes here.

But there is more to consider than whether or not your wishes will be respected. The consequences of dying without a Will fall hardest on those left behind to pick up the pieces. A survey by the National Consumer Council found that the human cost of people not making a will runs high.

At a time when your loved ones are feeling most vulnerable they will have to deal with…

  • The extra hassle and worry over administering an estate without a will.
  • The extra expense that is associated with administering an estate without a Will .
  • The extra strain and the lasting damage to personal relationships that can occur when it’s not clear how someone may have wished to distribute their money and possessions.
  • The devastating consequences of seeing an estate is distributed (according to the inheritance or intestacy laws) to the ‘wrong’ people.
  • The possible economic consequences of having the family home sold to pay out surviving relatives

Put simply, there is an easy and effective way to save your loved ones a lot of heartache and strife. By making a Will you can ensure that you have peace of mind and that you’re saving your loved ones the time, stress, expense and potential heartache of trying to sort out your affairs after you’re gone.

Making a Will is simple. Make a legally valid Will now.

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The intestacy pitfalls of not making a Will

Lawpack on April 29, 2020

‘Changing living patterns […] mean increasing numbers of people will fall through the safety net provided by our inheritance laws should they die without making a Will’.(1)

The National Consumer Council identified a very worrying ‘Wills gap’. Their research revealed that those who are most at risk of not being covered by the current intestacy laws are also those most likely not to have made a Will. These include cohabitants (people living together but not married), separated or divorced couples and parents with dependent children.

If you haven’t yet made a Will, maybe you should read on…

It’s true to say that everyone should make a will. Today’s family structures are so much more diverse and complicated than our inheritance laws can possibly have accounted for. So we are all, in a sense, not covered, but making a Will can simply solve this.

But what does it mean for those who die without making a Will?

It could mean that the family home may have to be sold to pay claimants on your estate. It could mean that those you intended to leave money to will get nothing. It could mean that your children are looked after by someone who you may not have chosen.

If you haven’t made a Will, the consequences will fall hardest on those you leave behind.

It’s estimated that there are over one million people in England and Wales who know of examples where at least part of the estate went to the ‘wrong’ person.(1) And many more know how much time, expense and stress can be caused when you’re trying to deal with someone’s affairs if they haven’t made a Will. Sometimes it can cause irreparable damage to relationships.

Here are just some things to consider if you think our intestacy laws will cover you.

  • There is no such thing under present laws as a common-law husband or wife. Cohabitants have no automatic right to inheritance.
  • If a divorce has not been finalised, the surviving spouse may inherit the whole, or part, of the estate.
  • Where a guardian for children under the age of 18 has not been identified in a Will, the courts may appoint one.
  • Expensive trusts may be set up or inheritance tax may be applied.

You can find out more about how the laws of intestacy work here, or you can stop worrying and make a Will today here.

(1) National Consumer Council “Finding the Will” 

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Updates & Downloads

Lawpack on March 27, 2020

Dear Customer,

Thank you for purchasing our paper products.

Updates & Downloads for our paper DIY Kits

To access the downloadable forms and legal updates relevant to the paper DIY Kit you have purchased, please click on the appropriate product link below and then click on the grey tab ‘Updates & Downloads’ (underneath the product image):

Remember! Once you have clicked on the appropriate page you must enter your product registration code in the activation box provided to access your downloads.

Where can I find my product registration code?

Generally this can be found in the ‘How to Use This Kit’ section at the front of your Guidance Manual, in a grey box.

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Peace of mind

Lawpack on March 27, 2020

Established in 1993, Lawpack is the UK’s leading provider of legal forms and DIY legal kits. We also produce a range of legal guides and have just launched our new legal services, which can help you to write a Will and get a divorce.

Our aim is to help you save hundreds of pounds in costly solicitor’s fees by using our easy-to-use forms, kits and services. In areas such as wills, tenancy, divorce, power of attorney and business contracts, we can help you to get things done with minimum fuss, time and expense.

The main message behind our products is that it can be more cost-effective to draw up your own documents – a simple Will, say, or a standard tenancy agreement yourself – than go to a solicitor.

And if your situation is a little more complex and you need further expert guidance, then our legal services, such as our Bespoke Will and Managed Divorce Services, can give you the peace of mind of being hand-held through the process, but still at a discount price.

5 reasons to shop with us

  • Products approved by lawyers
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Solicitor approved and up to date

When using Lawpack’s range you can rely on the fact that all of our products are approved by lawyers, so you can be assured that they are up to date.

Lawpack has a wide range of legal forms and all of them:

  • Have been approved by expert solicitors
  • Are reviewed by lawyers on a regular basis
  • Include expert guidance notes on filling them in
  • Can be downloaded from our website instantly

Our bestselling range of DIY Kits – also available in WHSmith – provide:

  • Legal forms (paper and downloadable) approved by expert solicitors
  • A detailed Guidance Manual, written by a lawyer, providing background information and expert guidance on completing the legal forms
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All of our legal guides are:

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If you’re not happy with your paper product and you return it to us with your receipt within 30 days, we will be happy to give you a full refund.

Start saving legal fees with Lawpack today.

Resolutions for limited company meetings

Lawpack on March 27, 2020

What is a company resolution?

A company resolution is an official record of the decision of the directors or members of a company.

Once a resolution is passed, the company is bound by it. If a majority is not reached, then a resolution has not been made.

What kind of resolutions can be made?

Under the Companies Act, there are two categories to which resolutions can be assigned

The first centres on fixed issues that cannot be altered, such as the requirements for appointing a director or matters to be recorded at Companies House, among others.

The second revolves around issues that can be changed and which are generally accepted as suggestions, rather than hard facts.

These can deal with topics including ideas for how directors and shareholders run the company.

While the resolutions set out under the first category are subject to the Companies Act, those set out in the second category are merely enforced under the company’s own rules.

What are the benefits of resolutions?

Recording company resolutions in minutes is a positive way of sharing company procedure across the board and ensuring everyone is working towards the same goal.

How is a resolution made?

The company’s articles of association set out the way a vote on a resolution is conducted during a general meeting or a meeting of class members.

Typically a vote is taken by a show of hands, but any member can demand a poll unless company policy states otherwise.

Although the vote is not counted, the resolution is only passed when the chairman declares a majority vote in favour of the resolution.

Company members, and where relevant auditors, must be given notice of the intention to propose a resolution.

Must they be submitted to Companies House?

Company resolutions must be submitted to Companies House in print form, or via an approved Companies House form, within 15 days of being passed.

What other types of resolutions are there?

There is a number of different kinds of company resolutions which include:

  • Director’s resolutions: These are only used by directors at board meetings and they must be filed at Companies House. There are certain criteria that make up this sort of resolution but it includes a change in company and a move by directors to convert the old public company into a plc.
  • Ordinary resolutions: These are standard resolutions that are used for all issues unless the Companies Act or the firm’s articles of association need to implement another type of resolution.
  • Extraordinary resolution: As the title suggests, these are more uncommon types of resolutions that must be passed by a minimum 75 per cent majority vote. An instance where this kind of resolution might be relevant is for changing the rights of classes of shareholders.
  • Special resolutions: Similarly, these require a 75 per cent majority vote and deal with important issues that include changes to articles of association.
  • Elective resolutions: These apply to private companies only and are limited to five specific purposes.
  • Written resolutions: These may be proposed by the director or members and no prior notice nor a meeting is required. They apply to private companies who must issue a copy of the resolution in print form or electronically to every eligible member.
  • Class resolution: This applies to company resolutions proposed that will affect only one class of share and they can be obtained in writing or by passing an extraordinary resolution at another class meeting.
  • Shareholder resolution: These are required when resolutions are proposed by shareholders and are due to be moved at an annual general meeting if a certain amount of members request it.

Any companies wishing to save time making resolutions should consider downloading Lawpack’s Ready-Made Company Minutes & Company Resolutions ebook, which includes all the templates a limited company needs.

This book of templates has been updated to include reforms made to the Companies Act 2006.

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Health and safety obligations for employers

Lawpack on March 27, 2020

Poor health and safety can leads to illness and accidents, and significant costs for your business. 

Employers who take their responsibilities seriously and follow the correct health and safety procedures improve the productivity of their businesses and increase their reputation with their customers, regulators and their own employees.

Every working day, there are on average two deaths and 690 reported non-fatal injuries to employees. Absenteeism costs employers £13 billion a year and small companies, where the absence of one or two employees can make a huge difference, are the hardest hit.

With the cost of absenteeism rising, insurers are becoming more averse to granting employer’s liability insurance to companies with a poor, or no, health and safety record. Many companies, therefore, are being forced out of business, unable to trade without insurance cover or because of soaring premiums.

It’s in the best interest of employers to adhere to their health and safety responsibilities, but, be warned, the law is extremely strict, so you must follow the health and safety regulations precisely. If you don’t, you could find yourself being targeted by a Health and Safety Executive (HSE) investigation.

In a nutshell, here is an outline of how you, as an employer, can meet your health and safety responsibilities and adhere to the Health and Safety at Work Act:

1.  Carry out a risk assessment

Identify hazards in the workplace and evaluate the extent of the health and safety risks to your employees. Then, take appropriate action. Employers must also carry out a further assessment in the workplace after an accident has occurred.

Lawpack’s Fire Risk Assessment Kit can help you comply with fire safety regulations.

2.  Record your health and safety arrangements

Plan, organise, control and monitor health and safety in the workplace, and undertake a review of the ‘protective and preventative measures’ in place. Employers should appoint a competent assistant (or more than one, if it’s necessary) to help with their health and safety responsibilities.

3.  Employ competent people

Employers must not employ children of under school-leaving age in the workplace, unless their employment is part of an authorised scheme.

4.  Arrange contacts with external services

Have numbers of first aid assistance and emergency medical care for when injuries arise.

5.  Provide comprehensive health and safety information to all your employees

Employers should also include any temporary employees. Inform them of the health and safety risks (which were identified by the risk assessments you’ve made) in the workplace, the preventative and protective measures in place and tell them the name of your competent assistant. Be aware of communication issues such as language differences.

Lawpack’s Health and Safety Policy template can help you create a health and safety policy for your business.

6.  Make health and safety arrangements for the employees of other companies on site

Employers must provide appropriate instructions and information on health and safety.

7.  Provide health and safety training

Train employees in health and safety on induction, or upon their transfer to a new job or area, or when new equipment is introduced into the workplace. Employers must keep training records as evidence of this.

8.  Ensure that your employees notify you of any health and safety shortcomings in the workplace

9.  Investigate an accident

If an accident occurs in the workplace, record the findings of your investigation.

10. Keep records

Log all the above action you have taken.

 

 

What to do when your employees are off sick

Lawpack on March 27, 2020

It’s inevitable that at some point your employees will be ill. Ailments range from the common cold to serious illnesses. So, what do you, as their employer, have to do? What rights do your employees have?

Off sick for up to seven days

If your employee is off sick for up to seven days, you can ask them to fill in a form to confirm their illness. This is called ‘self-certification’ and you can provide your own version of this form.

Sick for longer than seven days

After seven days off work sick your employee will need a fit note from their GP or hospital doctor. The fit note says that the employee ‘may be fit for work’ or ‘not fit for work’. If it says that the employee ‘may be fit for work’, then you need to discuss the situation with them. You should consider whether there are any changes that could help the employee return to work.

Off sick for over a month

If your employee is off work for more than four weeks, then they are considered as long-term sick. It’s possible to dismiss an employee who is long-term sick. This is only after you have considered whether the employee can return to work with some adjustments, such as working part time. You must also consult your employee about returning to work should their health improve. Your employee will be able to take you to an employment tribunal if you unfairly dismiss them.

Holiday pay during sick leave

Holiday is still built up while your employee is on sick leave, no matter how long they are off for. Your employee can choose to use their holiday entitlement instead of sick leave, usually because they don’t qualify for sick pay. Any holiday entitlement that isn’t used because of sickness can be carried over to the following year. If your employee is sick before or during that holiday leave, then they can take it as sick leave and take the leave another time.

Disability

If your employee becomes disabled as a result of their illness, then you are expected to make ‘reasonable adjustments’ to accommodate their return to work. These could be things like working shorter hours or adapting equipment that your employee uses.

Sick pay

Your employee may be entitled to Statutory Sick Pay (SSP). To qualify your employee must have an employment contract; be off sick for four consecutive days (including non-working days); earn at least £118 per week; give you the correct notice; and give you proof of their illness after seven days. You can set your own notice period and your employee must tell you about their illness within this time limit. If you have no set notice period, then it will be seven days.

For 2019/2020 the rate of SSP is £94.25 per week for 28 weeks. You can offer more if you have a company sick pay scheme.

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