# Intestate Succession in the UK: Intestacy, Freedom of Testation and Planning > How estates are divided without a will in England and Wales: £322,000 statutory legacy for spouse, freedom of testation and the 1975 Act, 40% inheritance tax and residence-based regime from April 2025. Author: Maria Plotnikova — Lawyer, Family Office (https://wiki.private.law/en/authors/plotnikova) Last modified: 2026-08-22T10:41:00.000Z Canonical: https://wiki.private.law/en/uk-intestate-succession Topics: structures Jurisdictions: uk Product tags: estate-planning Semantic tags: estate-planning --- ## Concept In England and Wales, the will is king: a testator is free to leave property to anyone, with no forced share for children or spouse whatsoever. But when a will is absent, intestacy rules kick in—a rigid statutory formula from the [Administration of Estates Act 1925](https://www.legislation.gov.uk/ukpga/Geo5/15-16/23). At the same time, there is no single "British" succession system: Scotland operates under its own law with elements of forced share \(legal rights\), Northern Ireland under a third set of rules. Below we focus on England and Wales, where most international families settle. > 🍓 Without a will in England and Wales, the spouse receives personal chattels, a fixed statutory legacy of £322,000 and half the remainder; the other half is divided among the children. Freedom of testation is almost absolute—there is no forced share—but dependants may claim "reasonable provision" under the 1975 Act, and estates above the thresholds face 40% inheritance tax. ## How intestacy works If there is both a spouse and children, the surviving spouse takes personal chattels, the statutory legacy—since 26 July 2023 this is [£322,000](https://www.legislation.gov.uk/uksi/2023/758/made)—and half of the remainder; the other half goes to the children in equal shares \(grandchildren by right of representation\). No children—the spouse receives everything. No spouse—everything is divided among the children, then the line passes to parents, siblings. The key trap: an unmarried cohabitant without marriage or civil partnership inherits nothing under intestacy, however long the relationship. Scotland is more generous to close relatives: prior rights and legal rights \(legitim\) apply there—a share for spouse and children that a will cannot entirely override. ### Freedom of testation and the 1975 Act There is no forced share in the English sense, but there is a safety valve: the [Inheritance \(Provision for Family and Dependants\) Act 1975](https://www.legislation.gov.uk/ukpga/1975/63) allows a spouse, former spouse, children, cohabitant and dependants to ask the court for "reasonable financial provision" if a will or intestacy has left them with nothing. This is not an automatic continental-style réserve but a discretionary court power—yet it genuinely constrains freedom of testation. ## Inheritance tax IHT is charged at 40% on amounts above the nil-rate band of £325,000. A home passing to direct descendants adds a residence nil-rate band of another £175,000; both bands are transferable between spouses, so a couple can shelter up to £1 million. Transfers between spouses are exempt. The bands are frozen to the end of the 2030/31 tax year — 5 April 2031, after the extension announced at Budget 2025 — meaning inflation quietly drags more estates into tax. Two major changes reshape the picture for business and land owners. From 6 April 2026 business and agricultural relief run through a separate £2.5 million allowance per person: 100% relief within it, 50% above, and any unused allowance transfers to the surviving spouse, so a couple can shelter up to £5 million of qualifying assets on top of the nil-rate bands. And from 6 April 2027 unused pension savings enter the IHT base for the first time. ### Residence instead of domicile \(2025\) Historically, IHT was tied to domicile: a non-dom paid no tax on non-UK assets. From 6 April 2025, the non-dom regime is abolished and IHT becomes [residence-based](https://www.gov.uk/guidance/inheritance-tax-if-youre-a-long-term-uk-resident). Now a "long-term resident"—someone who has been UK tax resident for at least 10 of the last 20 years—is taxed on worldwide assets, with a "tail" of 3–10 years after departure. The status of trust assets is no longer fixed by the settlor's domicile but depends on whether they are a long-term resident at the charge date. For relocating families, this is a pivotal planning fact. ## By asset type English law also splits the estate: land and real property are inherited according to the law of the place where they are situated \(situs\), movables according to the law of the deceased's domicile. An English house owned by a foreigner will pass under English rules, while cash and shares in an account at a Russian bank will pass under the law of their domicile, and for their release the Russian bank will require a Russian certificate of inheritance: an English grant of probate will not work there directly. At the same time, after the 2025 reform, for tax purposes what matters is not domicile but length of residence—a long-term resident pays IHT on all worldwide assets, including that very Russian account, even if the succession itself is governed by foreign law. ## Planning techniques The foundation is a will \(including mirror wills for spouses and will trusts\). Lifetime gifts work under the seven-year rule: a potentially exempt transfer drops out of the estate if the donor survives seven years, with taper relief by year, plus an annual exemption of £3,000. Trusts \(relevant property regime with ten-year and exit charges, bare trusts, life-interest trusts\) allow control of succession and protection of minors. Life insurance policies are written "in trust" so the payout bypasses the estate and provides liquidity for IHT. Coordination of nil-rate and residence nil-rate bands between spouses, charitable bequests \(IHT rate drops to 36%\) and—for the mobile—planning residence itself around the ten-year threshold complete the picture. > 🍓 Without a will, the law gives the spouse £322,000 and half, the children the remainder, and a cohabitant nothing. Freedom of testation is broad, but it is reined in by the 1975 Act and 40% IHT. Wills, trusts, seven-year gifts and life insurance in trust bring the estate under family control, and from 2025 everything turns not on domicile but on length of residence. ## When intestacy does not fit Intestacy in England ignores cohabitants, fragments businesses and knows nothing of family plans, while freedom of testation without structure leaves the IHT flank and 1975 Act claims open. A will, trusts and—for an international family—a cross-border coordinated plan fix this in advance. **🧭 Check your case**: [Succession Navigator](https://wiki.private.law/en/legacy)—which law applies, where forced shares and taxes arise. ## Q/A ### Are intestacy rules the same throughout the United Kingdom? No. The formula using a £322,000 statutory legacy applies to England and Wales. Scotland and Northern Ireland have separate systems, while an international estate also requires a governing-law analysis for each asset class. The place of death or British citizenship alone therefore does not determine the answer for every asset. ### What does a spouse receive if the deceased left children but no will? In England and Wales, the spouse or civil partner receives personal chattels, the first £322,000 of the net estate with interest, and one half of the balance. The other half passes to the children or descendants of a predeceased child. If there are no descendants, the spouse takes the whole intestate estate; if the net estate does not exceed the statutory legacy, no balance remains for children. ### Do an unmarried partner and stepchildren inherit automatically? An unmarried partner receives no intestacy share however long the relationship, although an eligible applicant may ask the court for reasonable financial provision under the 1975 Act. A stepchild is not treated as issue unless adopted by the deceased; adopted and biological children have equal status under the intestacy rules. ### Are all of the deceased’s assets distributed under the intestacy rules? No. An asset held as a beneficial joint tenancy generally passes to the survivor, while a tenant-in-common share enters the estate. Other assets may pass under a trust, insurance policy, pension arrangement or valid beneficiary nomination. Ownership form and the governing beneficiary provision must be identified before calculating the intestate estate. ### Does the £322,000 statutory legacy mean that amount is exempt from IHT? No. £322,000 is the spouse’s succession entitlement under intestacy, not a tax allowance. IHT is calculated separately: the current basic nil-rate band is £325,000, with possible spouse exemption and residence nil-rate band if their conditions are met. Intestacy distribution also does not disapply the residence-based scope for overseas assets or special relief rules. --- ## Factual claims - IHT is charged at 40% on amounts above the nil-rate band of £325,000. - English law also splits the estate: land and real property are inherited according to the law of the place where they are situated (situs), movables according to the law of the deceased's domicile. - Intestacy in England ignores cohabitants, fragments businesses and knows nothing of family plans, while freedom of testation without structure leaves the IHT flank and 1975 Act claims open. - 🧭 Check your case: Succession Navigator—which law applies, where forced shares and taxes arise. --- Source: wiki.private.law — the private.law legal knowledge base. When quoting, cite the canonical page URL. Consultation with a lawyer: https://t.me/private_law_bot