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Inheritance

Also known as: Bequest, Legacy, Estate Distribution

Definition

Inheritance is the money, property, and possessions you receive from someone who has died, either as they specified in their will or according to legal rules if they didn't make one.

Understanding inheritance is fundamental to estate planning, whether you're making a will to protect loved ones or you're a beneficiary wanting to know your rights and what to expect.

What Does Inheritance Mean?

Inheritance encompasses everything a deceased person leaves behind—from their home and savings to family heirlooms and investments. Under English and Welsh law, governed by the Wills Act 1837 and the Administration of Estates Act 1925, inheritance is the transfer of property from a deceased person's estate to their beneficiaries. The estate is everything the deceased owned minus debts, while inheritance is what beneficiaries actually receive after debts, expenses, and taxes are settled.

Distribution happens in one of two ways. With a will, an executor distributes assets according to the deceased's wishes. Without a will, an administrator distributes according to intestacy rules. Under intestacy, only married spouses, civil partners, and blood relatives can inherit—unmarried partners have no automatic inheritance rights, regardless of how long they've been together.

Emma, 42, made a will leaving her £280,000 house to her two children equally, £10,000 to her sister, and the remainder to a cancer charity. When Emma died, her executor followed these instructions exactly. In contrast, James, 55, died without a will. He was unmarried but lived with his partner Claire for 12 years. Under intestacy rules, Claire received nothing—James's entire estate was divided between his two adult children, and Claire had to find new accommodation within months.

The inheritance process typically takes 6-12 months from death to distribution. Simple estates with only bank accounts might distribute within 3 months, while complex estates involving property sales or inheritance tax can take 18 months or longer. Beneficiaries cannot access inheritance until the Grant of Probate is issued and all liabilities are settled.

Common Questions

"How long does it take to receive an inheritance in the UK?" On average, beneficiaries receive their inheritance 6-12 months after someone dies. Simple estates might take 3 months, while complex estates involving property sales or inheritance tax can take 18 months or longer. You cannot access inheritance until probate is granted and debts are settled.

"Do I have to pay tax on inheritance I receive?" No, beneficiaries don't pay tax on receiving an inheritance—any Inheritance Tax is paid from the estate before distribution. However, you may pay tax on income generated by inherited assets afterwards, such as rental income from an inherited property.

"Will my partner automatically inherit everything if I die without a will?" No—this is a dangerous misconception. If you're married or in a civil partnership, your spouse inherits under intestacy rules. However, unmarried partners have no automatic inheritance rights and could receive nothing. Making a will is essential for unmarried couples.

Common Misconceptions

Myth: If I die without a will, my unmarried partner will inherit my estate.

Reality: Unmarried partners have absolutely no automatic inheritance rights under UK intestacy rules. Only married spouses, civil partners, and blood relatives can inherit. Without a will, your partner could receive nothing, even after decades together. The widespread belief in "common law marriage" is legally incorrect—unmarried partners have no inheritance rights.

Myth: I'll receive my inheritance immediately after someone dies.

Reality: Inheritance distribution typically takes 6-12 months, sometimes longer. Executors must obtain probate, value the estate, pay debts and taxes, and often sell property before distributing assets. You cannot receive your inheritance until the Grant of Probate is issued and all liabilities are settled.

Understanding inheritance connects to these related concepts:

  • Beneficiary: The person who receives an inheritance from an estate.
  • Estate: The total pool of assets and debts from which inheritance is distributed.
  • Inheritance Tax: A levy on estates exceeding £325,000, paid before beneficiaries receive their inheritance.
  • Intestacy: The legal rules that determine who inherits when there's no will.
  • Legacy: A specific gift within a will, forming part of the overall inheritance.

Need Help with Your Will?

Making a will is the only way to control who inherits your estate and ensure your loved ones—especially unmarried partners—are protected. Without a will, intestacy rules decide who gets what, and this may not match your wishes.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.