What Happens When an Estate Is Left Without a Will?

The sudden passing of Liam Payne on 16 October 2024 shocked the world and left a legal question at the heart of his reported £24.3 million estate: what happens when someone dies without a will?

What Is Intestacy?

Intestacy arises when a person dies without leaving a valid will. In these circumstances, the distribution of their assets (known as their "estate") is governed by the strict rules of intestacy set out in the Administration of Estates Act 1925, rather than by the individual’s personal wishes. 

The intestacy rules follow a fixed hierarchy of relatives and do not take into account friends, unmarried partners, or charities, regardless of the deceased’s relationship with them.

How the Intestacy Rules Applied to Liam Payne

At the time of his death, Liam Payne was unmarried and had one child, Bear, with his former partner Cheryl Tweedy. Because Payne did not leave a will, his estate fell to be distributed under the intestacy rules of England and Wales. Since Payne was not married when he passed away, his girlfriend was entitled to nothing. The intestacy rules dictate that, in the absence of a spouse, the deceased’s children inherit the entire estate. In Payne’s case, his son Bear is the sole beneficiary.

Because Bear is a child, his father's estate will be held on a statutory trust until he reaches the age of 18. The administrators (Cheryl Tweedy and lawyer Richard Mark Bray) are responsible for managing the assets in the statutory trust in the interim.

Bear will inherit the full estate when he turns 18. Until then, the administrators can use the funds for his benefit, such as for education or living expenses, but they cannot distribute the capital to him. There have been reports that Cheryl Tweedy wishes to delay Bear’s access to the inheritance until he is older, possibly 25, to ensure he is mature enough to handle such a significant sum. However, under current intestacy law, unless a will or court order provides otherwise, Bear will be entitled to the assets at 18.

Liam Payne’s situation highlights several issues that can arise when someone dies without a will. In particular: 

• If the deceased ever expressed a wish to help particular charities or friends, or to put an age limit on a child’s inheritance, this would not automatically be honoured. 
• In addition, partners that are not married or in a civil partnership, regardless of the length or closeness of the relationship, have no automatic right to inherit under the intestacy rules. 
• Furthermore, larger estates may face higher inheritance tax liability, and opportunities to take advantage of tax exemptions could be missed. 
• Passing a large fortune to an 18-year-old, as in Bear’s case, can also be problematic if the beneficiary is not responsible enough to handle such sums of money.

Why Should You Make a Will?

Making a will protects your family in many different ways. A properly drafted will allows you to decide who inherits your assets, including friends, partners, and any charities you may wish to support. It enables you to appoint guardians and trustees for minor children, specify at what age or under what conditions children inherit, and optimise your estate for tax efficiency. Most importantly, it can help avoid family disputes about wills and moral administrative complications.

At Samuels, our experienced private client team can guide you through every aspect of estate planning, from drafting your will to setting up trusts and advising on inheritance tax. Don’t leave your legacy to chance. Contact us today to ensure your wishes are respected and your loved ones are protected.