Eye-opening facts about UK inheritance law

Inheritance law is one of the parts of civil law that deals with the distribution of assets after the death of a deceased person (a person who has died) among the heirs. The UK inheritance law defines certain concepts and rules based on which the transfer of assets remained from the deceased person happens to the heirs (survivors of the deceased person).

Considering that many people have immigrated to England over the past years and their main place of living is established in this country, We decided to write a strategic article about Inheritance law in England in order to explain the concepts in a very simple language. We would like to explain to dear readers of Livingity with the full details of the Inheritance law in England.

In this article, We will try to examine the process of transferring assets to the survivors of a deceased person by referring to the basic principles of inheritance rights in England and increase your awareness in this regard.

Inheritance law in England

The goal is to make this article simple and understandable for everyone, but in the first step, we have to talk a little about the legal system of the UK for inheritance so that you can understand the rest of the article better.

The English legal system is a little different from many legal system in the world, and most of the laws are the result of decisions issued by English courts over many years. In other words, they say that if our judge has already commented on a case, we will deal with new cases based on the same decision. This system is called Common Law.

Inheritance laws in England are basically regulated by Common Law, which are formed by judges in courts of law. But some cases in the law of inheritance in England are also dependent on the laws set by the UK Parliament, such as the Inheritance Act of 1975 .

So far, you have noticed that the discussion of UK inheritance law has two main legal sources: one is the decisions of the courts and the other is the laws passed by the UK Parliament, such as the Inheritance Act of 1975. In the following, We will explain about issues such as inheritance in England and the rights of a the spouse of a deceased person, as well as the important issue of a will in England.

The scope of the UK inheritance law

In general, in England, if a person passed away without a will, his property and assets are transferred according to the default rules first among first-degree family, then parents, and then to siblings and other relatives. If a person has a will, assets are transferred according to the distributions specified in the will. We will talk about the will later on.

In England, family members who can be considered heirs after a person’s death are known as consanguineous heirs. These are the people who were alive at the time of the deceased’s death.

The order of inheritance and the amount of inheritance that each person receives varies depending on the relative relationship with the deceased person. Below is the order of succession that normally follows in England, based on default distribution rules:

Inheritance in England if spouse and children are alive

According to the Inheritance law in England, If the spouse and children are alive and the deceased does not have a will, the share of each of these heirs is determined in the laws of inheritance in England, and it is clear how much of the inheritance each of them will receive. In this case, the inheritance is distributed according to the principles of equal division.

In general, if the spouse and children of the deceased are alive, the assets are divided between the spouse and children as follows:

•  Spouse: The living spouse of the deceased person inherits half of all the properties and assets and he can dispose of them freely. In some middle-eastern countries, the wife’s share is one-eighth and one-fourth.
• Children: The children of the deceased have the right to take possession of the other half of the assets. If the number of children is more than one, half of the property is divided equally between them. An interesting fact is that in some countries like In Iran, boys always inherit twice as much as girls.

Consider the following example:

Suppose a person named “Mr. Jackson” died in England and his wife named “Mrs. Jackson” and two children named “Joe” and “Sara” are alive. We also assume that there is no will from Mr. Jackson. in this case:

– Mrs. Jackson has the right to take possession of half of Mr. Jackson’s assets.

– Joe and Sara each have the right to take possession of  a quarter of Mr. Jackson’s assets. (The remaining half will be divided equally between them after Mrs. Jackson’s inheritance)

As a result, in this case, Mrs. Jackson will receive half of the assets and Joe and Sara will each receive a quarter of the assets.

Inheritance law in England if the spouse is alive and there are no children

In England, according to the UK inheritance law, the surviving spouse of a deceased person inherits the assets in full. This means that in the absence of a will and there are no other heirs, the spouse has the right to take possession of all the assets of the deceased. In other words, if the deceased person has only a living spouse and no children, all the assets will go to the spouse of the deceased person.

It is important to remember that “spouse” means the legal spouse of the deceased and special cases may apply where the legal spouse’s status is complicated, for example if there is a separation or divorce. If there are different conditions, it is better to consult a legal advisor specializing in this field.

Inheritance law in England if only children are alive

If the deceased person had only children at the time of death, they will inherit equally. In this case, each of the children will benefit equally from the assets. Don’t forget that in some countries like Iran, male children have twice the inheritance share of female children.

In England, according to the UK inheritance law, if only your children are alive and there is no spouse, the inheritance laws are based on the “Intestate Succession” system. Under this system, your assets are divided equally among your children.

Generally, if there are only your living children, your assets will be divided equally between them. Each child will receive equal share and the assets will be divided fairly among them.

If your children are not alive at the time of your death, the inheritance rules apply to other close relatives, such as your parents or your brothers and sisters.

It is important to know that to avoid probate issues if you wish to distribute your assets in a certain way, you should prepare a will to set out detailed instructions on how your assets will be distributed after you passed away.

The UK inheritance law if the spouse and parents are alive

If the deceased person’s spouse and parents are alive and the deceased person did not have a will, in this case, the assets are divided equally between the spouse and the parents.

In general, if the deceased’s spouse and parents are both alive, the assets are divided between them as follows:

• Spouse: The living spouse of the deceased person has the right to inherit one third of the assets.
• Parents: The deceased person’s parents each have the right to take possession of the remaining third of the assets.

For example:
Suppose a person named “Mr. Jones” has passed away and his wife named “Mrs. Jones” and parents named “Mr. Jones senior” and “Mrs. Jones senior” are alive. in this case:
– Mrs. Jones has the right to to take possession of one third of the assets.
– Mr. Jones senior and Mrs. Jones senior each have the right to occupy the remaining third of the assets.

As a result, in this case, Mrs. Jones receives one-third of the assets, and Mr. Jones senior and Mrs. Jones senior the mother each receive one-third of the assets.

If the deceased does not have a spouse or children, the assets will go to his parents. It does not include the deceased person’s parents nor does it need to be divided equally between them.

Do siblings also inherit in England?

When looking into the UK inheritance law, in the absence of a spouse, children or parents, the assets go to the deceased’s siblings. In this case too, each sibling receives equal shares of the assets.

If none of the above people are available, the inheritance is given to other relatives. In this case, the ratio and affinity of kinship are more limited and have less influence on the division of inheritance.

It is important to know that the things We talked about above are by default and if there is a valid will, the inheritance may be divided in another way. Also, in special cases and for more detailed knowledge of the principles and rules of inheritance in England, it is definitely recommended to consult a specialist legal advisor.

Wills in England

A will is a legal document in which a person (the testator) specifies the instructions and desired distributions for the transfer of his assets after death. According to the Inheritance law in England, the will must be prepared based on valid inheritance laws and in compliance with legal requirements. In the absence of a will, assets are inherited according to the default rules of inheritance that We discussed above.

A will in England allows a deceased person to have more control over their inheritance and how their assets are distributed compared to the default inheritance laws.

In England, you can bequeath all your property in a will. This legal option allows you to determine exactly how your assets will be distributed after your death. With a will, you can determine which people or organizations your assets will go to, how much each person will receive, and any conditions and restrictions on the distribution of assets.

Inheritance tax in England

In England, Inheritance Tax is generally considered if the deceased person’s assets exceed a certain amount. Of course, this tax has exemptions and exceptions for heirs with relatives.

At the moment ; Inheritance tax laws in England are as follows:

• 1. Exemption cap: Everyone in England has the right to use the tax exemption cap. In the 2021-22 financial year, the cap is £325,000 for an individual. If the inheritance of the assets and properties of the deceased person is less than this amount, inheritance tax is not applied on it.
• 2. Tax rate: If the sum of several inheritances received from a person is more than the exemption limit, inheritance tax is applied. Inheritance tax rate in England is 40%. This means that the inheritance tax to be paid is 40% of the intended inheritance.
• 3. Exemptions and exceptions: In some cases, certain assets and property may be exempt from inheritance tax in England. For example, if assets such as the family home are inherited to children, inheritance tax will not apply to them. Also, there are several exemptions and other rules for different cases that may have an impact on the amount of inheritance tax.

Inheritance tax regulations may change in the future, so it is best to consult a tax advisor or professional lawyer for more accurate and up-to-date information.

Questions and Answers

In Conclusion

Inheritance law in England has comprehensive rules and regulations that deal with the distribution of assets after the death of a deceased person. People who have their life in the UK and somehow interact with these issues in the UK should be familiar with basic concepts such as inheritance, spousal rights, wills and inheritance tax.

Considering the complexity and influence of inheritance rights in people’s lives, seeking proper legal advice and the preparation of a valid will can be very important to facilitate and correct the process of transferring assets.

In any case, as always, We recommend that on top of reading the above article, always consult with lawyers and experts on the subject of  inheritance law in England. This allows you to do all the steps properly.