Liam Payne left behind a £24 million fortune after his death last October but without a will in place, the late singer's estate is now being handled under UK intestacy laws.
In the absence of a will, the rules of intestacy mean Payne’s wealth is likely to go to his son, rather than his girlfriend Kate Cassidy, despite the fact that the couple had planned to marry and his former partner Cheryl Tweedy has been granted the power to administer his estate.
Why should you have a will?
Shockingly, almost two-thirds of UK adults do not have a will in place, meaning there is no formal record of what they want to happen to their estate and crucially, any children or dependents should they die.
A will is one of the most important documents you will ever sign as it ensures that your intentions will be carried out as you would have wished. Wills are legally binding and outline what you would like to happen to your money, property and possessions and any children or dependents you have. Your will sets out who you would like to leave certain assets to, known as beneficiaries.
What happens to my assets without a Will?
It is a common misconception that a ‘common law wife or husband’ would automatically inherit in the event of their partner dying. If you die without a valid Will, you are ‘intestate’, and your assets are distributed by intestacy rules, which benefit only married persons, civil partners and close relatives. Cohabiting partners do not inherit automatically, they must be included in a will. If your estate exceeds £322,000 with surviving children or grandchildren, your spouse or civil partner will inherit your personal belongings, the first £322,000 and half of the remaining estate. Without descendants, your spouse inherits everything. Jointly owned property passes automatically to the surviving partner if owned as Joint Tenants but not as Tenants in Common. Joint bank accounts transfer to the surviving holder.
What are Executors?
Executors are the individuals or professionals responsible for dealing with the estate and carrying out your wishes on your behalf when you are no longer here and they will be detailed in your Will. They can be family members, friends, or professionals. It is important to carefully consider who you choose as it can be difficult and time consuming for those involved, particularly if they are still grieving. A way of avoiding emotional distress or difficulties for executors is to consider appointing a professional executor such as a solicitor who can ensure that your estate is administered impartially and fairly without the emotional involvement of a friend or family member. This option can also avoid the issues that may arise if your executors die before you, leaving you without one, as the law firm is the executor rather than one individual.
What is a Lasting Power of Attorney (LPA?)
A power of attorney is a way of giving someone you trust the legal authority to make decisions on your behalf if you’re no longer able to make them yourself.
There are two types of Lasting Power of Attorney. One for making financial decisions and another for making health and care decisions and you can set up LPAs for both types of decisions. An LPA for health and care decisions can only be used if you lose mental capacity.
Some people believe they should have either a will or a Lasting Power of Attorney, but they really go hand in hand and it might be more appropriate for your circumstances to have both, as they each play different but equally important roles. Your will ensures that your wishes are adhered to after you die but a Lasting Power of Attorney is an important document that outlines your wishes if you lose capacity while you’re alive, for example if you suffer a severe brain injury or develop dementia. Without Lasting Powers of Attorney in place, no one has the legal authority to make decisions for someone else, even if they are married.
It costs so little to prepare a Will and it can save so much heartache and inconvenience when you are no longer here. Don’t put it off any longer. Our friendly solicitors can help you get your personal affairs in order with minimum fuss. Instructing a legal professional specialising in estate planning and wills is particularly important if you have complicated finances or a more complex family structure.
Find out more by calling 0345 900 5401, email enquiries@sweeneymiller.co.uk or visit sweeneymiller.co.uk