What Happens When You Die Without A Will? Learnings From Liam Payne’s Case

Recent headlines about the tragic death of musician Liam Payne have reflected upon his life and legacy, recognising the heartbreak and loss his loved ones are facing. When a beloved member of the family unexpectedly dies, it is an incredibly fraught and sad time for those left behind. This can be made particularly difficult if someone dies without a Will – known as dying intestate – as was the case with Liam Payne.

Alice Rowlands, Senior Associate Solicitor at JCP Solicitors, explains how his death is raising awareness of the importance of writing a Will at any age, especially for those who have children.

When he died without a Will, Liam Payne’s net estate was reportedly valued at £24.3 million. The net amount will be subject to inheritance tax, which is payable at 40% on the assets exceeding the allowance of the first £325,000, whilst additional allowances are often available, it is unlikely that Liam’s estate would have qualified for them. This will mean the tax payable will be substantial.

The rules of intestacy state that his total estate, after IHT is paid, should be left in accordance with a hierarchy as set out in legislation. As he was unmarried, this means his son Bear will inherit the full estate on trust and he will receive it as soon as he turns 18. This will set up Liam’s son for life so he is fully provided for, yet there may be some concerns around the financial maturity of an 18-year-old, and inheriting such a large sum at a young age may make his son vulnerable for people targeting him for financial gain. Whilst there may be an option to mitigate this, it would involve Bear’s mother applying to the Court for a Deed of Variation on behalf of Bear, which would vary the estate, so the fund is received at a later age than 18. This process would include a lengthy and costly application, with no guarantee that the Court would approve the application.

Dying intestate means that you lose control over who administers your estate as this will be determined by the rules of Intestacy. In Liam’s case, this means that his estate is administered by the surviving parent of Bear, and a second person of her choice. Once the estate has been administered, the assets will then be placed in a Trust which will be administered by Bear’s mother, Cheryl and the second person she has chosen. Although in this case it would be unlikely to cause any issues - it is widely understood that Liam and Cheryl had a good co-parenting relationship - for other people in similar circumstances, it may not be ideal to allow an ex-partner to have full management of their child’s financial interests.

Sadly, dying without a Will also means that loved ones he may have wanted to provide for have lost out. It is widely reported that Liam shared a close relationship with many of his family members for example his parents and sisters, however the intestacy rules will not provide for them to receive any share of his estate.

Deciding to write a Will can be a daunting thought, but seeking expert advice from a trusted Solicitor can help to ease any stresses or anxieties around the process. It is vital to make a Will early in life and to keep it regularly updated, especially if you have children, are unmarried or have a blended family situation which the rules of intestacy do not account for.

Liam Payne’s girlfriend would be within her rights to make a claim for financial provision under the Inheritance (Provision for Family and Dependents) Act 1975, if she was financially reliant upon him, as could any of his surviving family. Such a claim can be made by certain categories of person who feel that they have not been had adequate provision from the estate of a person who has passed away. The possibility of such claims could have been discussed, and perhaps mitigated if Liam had prepared a Will, by either providing for those persons or considering other options.

Writing a Will is a positive step to take for the benefit of your loved ones, ensuring your wishes are respected when the time comes.

If you would like advice and guidance on writing a Will, JCP Solicitors can help. Email our team on hello@jcpsolicitors.co.uk or call 0333 209244.