Last year, on the 16 October, Liam Payne, former One Direction star, died at 31 years old after falling from the third-floor balcony of a hotel in Buenos Aires in Argentina. He died intestate, which means that he died without leaving a valid Will, and therefore no indication as to who he wished to benefit from his £24.3 million estate. This case is an example of the significance of estate planning and writing a Will. This is to avoid both additional emotional distress for family members and dependants, and to ensure your wishes are carried out after your passing.
What does dying intestate mean?
If you do not make a Will, you will die intestate. This means that strict default legal rules apply as to how your money and property are distributed, and this ultimately may result in your assets going to relations that you did not intend. Having a clear and legally sound Will helps to avoid adding any unnecessary disputes regarding your wishes at such an emotional time. It ensures that there is no ambiguity regarding your intentions and prevents delays in distributing your Estate, which can occur without a Will, that is when you died intestate.
What does this mean for Liam Payne’s Assets?
Under the intestacy rules of England and Wales, the estate is distributed in accordance with a pre-determined hierarchy. Whilst in a relationship with Kate Cassidy, she and Payne were not married or in a civil partnership. This means that the only person dictated by the hierarchy to inherit, is Payne’s only son Bear. Bear will receive the entire of the estate as a statutory trust, meaning that he will have an absolute right to the assets as soon as he turns 18.
Would marriage have changed the situation?
If Liam and Kate had been married when he passed away, the outcome would have looked very different. There is an order of entitlement under the intestacy rules with the spouse being the first untitled, but if there is no spouse and children, the children are entitled to inherit the whole estate. Under these intestacy rules, the surviving spouse is entitled to £322,000.00 plus 50% of the remainder of the estate, which means Bear would have received the other 50% instead of the entire £24.3 million.
Conclusion
Liam Payne’s death and lack of Will serve as an important reminder of how imperative it is to make a Will and plan ahead. It is not something to put off doing until you are older, especially if you are an unmarried couple as those closest to you may be left with nothing if you do not plan ahead.
Hamza Mustafa, Head of Private Client at AFG, ‘many people mistakenly think that there is no need to make a Will until they are reaching retirement age, but cases like this are a prime example of what can happen if you don’t plan ahead. Writing a Will when you are younger ensures the provisions are in place if the worst does happen, so that those who rely on you are not left in the lurch.’