Former One Direction singer Liam Payne died tragically in October last year aged 31 and court documents have revealed he did not make a will before his death.
Clare Rogers, associate solicitor in WHN’s wills and probate team, examines what this means for Liam’s £24m estate and potential issues which could arise.
Who does Liam’s estate pass to and why?
According to the Money and Pensions Service (MaPS), 56 per cent of all UK adults do not have a will.
The figure is reportedly around 75 per cent of UK adults in their thirties.
The inheritance of Liam’s estate is subject to The Administration of Estate Act 1925, which sets out the priorities of who inherits the estate of someone who has died without making a will.
Liam was not married so, according to the Act, his entire estate passes to his son Bear when he reaches the age of 18. Bear’s surviving parent, Liam’s ex-partner Cheryl Tweedy, has been named as administrator of the estate until this time and when there are children involved, there must be two administrators, hence why solicitor Richard Bray is also named.
An administrator is responsible for collecting a deceased person’s assets, paying taxes and debts (such as Inheritance Tax) and then distributing the assets to those entitled to it. This means Cheryl will have limited powers to manage or invest on Bear’s behalf as well as using the funds for important aspects of Bear’s upbringing such as his education.
What are the key issues?
- In cases involving ex-partners, even if the split was not acrimonious, this situation can still create tension with other relatives such as parents and siblings who may have different opinions on a child’s future.
- When a child inherits a considerable sum of money at just 18 years of age, they can be vulnerable to influence from external parties.
- Liam was in a relationship at the time of his death and his partner Kate Cassidy is not entitled to any of his estate under the intestacy rules. In cases like this, it is possible a deceased person may have wanted to offer some financial provision their partner and wider family too.
Is there likely to be a claim on Liam’s estate?
When considerable sums of money are involved, this increases the likelihood that another party will make a claim against a deceased person’s estate, especially when no will has been made setting out how the deceased person would have wanted their estate to be divided.
Under the Inheritance (Provision for Family and Dependants) Act 1975, the following parties can make a claim for ‘reasonable financial provision’ of a deceased person.
- The spouse or civil partner of the deceased
- A former spouse or former civil partner of the deceased
- A child of the deceased
- Any person who was treated by the deceased as a child of the family
- Any person was being maintained, either wholly or partly, by the deceased immediately before their death
- A person living with the deceased two years prior to their death
When a deceased person had considerable wealth, it is more likely they were financially supporting one or more relatives, increasing the likelihood of a claim under the fifth point above.
Is contentious probate becoming more common?
Given the rise of more complex family structures, many couples choosing to have children before marrying and many UK adults still choosing not to make a will until reaching their 60s and older, contentious probate cases are on the rise.
Whether making a claim against an estate or inheriting an estate which you think could be subject to a claim, gaining strong legal advice should be the first step. However, having a will which was made prior to death is far easier and much less costly for all parties when dividing a person’s estate.
The advantages of making a will
- Being able to appoint people to look after your estate on death (executors).
- Making provisions for children’s inheritance through a trust, meaning children would receive the benefit of the estate but not necessarily all at once they reach 18. There can be trustees appointed who can provide guidance until a young person is mature enough to handle such matters themselves.
- The needs of other family/a partner can be considered and included in the will if appropriate. In short, somebody who makes a will can decide how their estate is distributed rather than the law dictating who gets it.
- Tax planning: Options including creating trusts could be explored to limit liability for Inheritance Tax. These issues are also normally discussed at the time of writing a will.
WHN has a dedicated wills and probate team, supporting clients with a wide range of services including estate administration, disputes, lasting powers of attorney and writing and reviewing wills.
Clare Rogers is an associate solicitor in the team, based at WHN’s Accrington office, who specialises in helping clients ensure their financial, property and other assets are passed on in accordance with their wishes after they die
You can contact Clare here or use our questionnaire tool here to find out what would happen to you if you died without making a will.
