Inheritance Tax Without a Will UK 2026: Intestacy Rules, RNRB on Intestacy, IHT Risks, and What Dying Without a Will Costs Your Estate
Dying without a will does not exempt your estate from inheritance tax — it just removes every planning tool that could reduce it. No NRB trust. No charitable 36% rate. No flexibility. And your cohabiting partner of 20 years inherits nothing.
Dying Without a Will Removes Every IHT Planning Tool
No will = no NRB Discretionary Trust; no 36% charitable rate; no flexibility for beneficiary circumstances. The estate pays IHT at 40% and the statutory intestacy rules decide who gets what — not you. A deed of variation (s142 IHTA) within 2yr can partially rescue the position but requires all beneficiaries to agree.
| Who Survives | Spouse/CP Gets | Children Get | IHT Analysis | Key Risk |
|---|---|---|---|---|
| Survived by spouse/CP AND children (issue) | All personal chattels + statutory legacy £322,000 (since 26 July 2023) + 50% of the remainder above the statutory legacy | 50% of the remainder above the statutory legacy — divided equally among all children; at 18 or on earlier marriage/CP | Spouse's share: IHT-free (s18 IHTA spousal/CP exemption — unlimited for UK dom spouse). Children's share: potentially chargeable if the children's 50% of remainder exceeds NRB after the spouse's share is deducted. RNRB: available if the qualifying residential property passes (in part) to the children under the intestacy division. IHT risk: the children's share is immediately chargeable — if children are young, HMRC will demand IHT within 6 months of death. | Estate of £1m: statutory legacy £322k + 50% of £678k = £322k + £339k = £661k to spouse; £339k to children. Spouse's £661k: IHT-free. Children's £339k: above NRB? NRB £325k — children's share £339k > £325k by £14k × 40% = £5,600 IHT. No RNRB if no property in the estate (or if the RNRB qualifying conditions are not met from the intestacy division). Compare: a will leaving £325k to NRB DT + remainder to spouse would eliminate this IHT. |
| Survived by spouse/CP ONLY (no children) | ENTIRE estate passes to the spouse/CP | N/A — no children under this scenario | Full spousal/CP exemption (s18 IHTA): entire estate passes to spouse IHT-free on first death. RNRB: NOT available on first death (no direct descendants to inherit the property). But: tRNRB (s8G IHTA) becomes available at the second spouse's death — the deceased first spouse's unused RNRB is transferred to the surviving spouse (IHT435 claim on second death). IHT at second death: surviving spouse has full estate including inherited assets; IHT on the combined estate minus NRB (£325k) + tNRB (£325k) + RNRB (£175k) + tRNRB (£175k) = £1m threshold — IF the surviving spouse's will leaves the property to direct descendants. Risk: the surviving spouse has NO WILL — double intestacy; RNRB on second death may be lost. | First death: nil IHT. Second death: surviving spouse inherits ALL; dies intestate; estate £1.5m; no children (no direct descendants). NRB + tNRB = £650k (tNRB requires IHT402). RNRB: potentially lost on second death if no direct descendants or will structure to claim it. Chargeable: £1.5m − £650k = £850k × 40% = £340,000 IHT. With RNRB + tRNRB (if claimable): £1.5m − £650k − £350k = £500k × 40% = £200,000 IHT. |
| Survived by children ONLY (no spouse/CP) | N/A — no spouse | ENTIRE estate divided equally among all children (at 18 or on earlier marriage) | No spousal exemption available. RNRB: potentially available if the qualifying residential property passes to the children (direct descendants) under the intestacy rules. But: no NRB — the whole estate is potentially chargeable. IHT exposure from the first £1 above £325k (NRB). The RNRB (£175k) increases the effective threshold to £500k if the property passes to children. Risk: HMRC expects IHT to be paid within 6 months of death; if the estate includes a property but only children as beneficiaries, the property may need to be sold to fund the IHT before the children reach 18. | Estate £800k (house £400k, cash £400k): children only. RNRB £175k applies (property to children = direct descendants). Chargeable = £800k − £325k − £175k = £300k × 40% = £120,000 IHT. The children's trustees must pay this IHT — which may require selling the house. A will with a trust for minor children could structure this more efficiently and specify the trustees to manage the sale. |
| Survived by parents only (no spouse, no children) | N/A | N/A — parents inherit equally if both survive; wholly to surviving parent if only one | Full estate passes to parents. No spousal exemption. No RNRB (parents are not direct descendants). NRB only = £325k threshold. IHT at 40% on excess. Parents may then face IHT on their own deaths on the inherited estate. Double IHT problem — the estate is taxed once on the deceased's death (at 40% above NRB) and then again on the parents' subsequent deaths (combined with their own estates). | Estate £600k to parents: £600k − £325k = £275k × 40% = £110,000 IHT on first death. Parents then inherit £490k (£600k − £110k) net of IHT — this sits in THEIR estates and may be taxed again on their deaths. A will would allow direct gifting to siblings, charities, etc. with full planning flexibility. |
| Survived by siblings only (no spouse, no children, no parents) | N/A | N/A — siblings inherit equally | Full estate to siblings (siblings share equally; half-siblings receive half a share). No spousal exemption. No RNRB (siblings are not direct descendants). NRB only = £325k threshold. IHT at 40% on excess. No flexibility in the intestacy rules to benefit charities, friends, partners, or anyone outside the statutory order. | Estate £500k to siblings: £500k − £325k = £175k × 40% = £70,000 IHT. A will leaving £175k to charity + remainder to siblings would trigger the 36% rate on the remaining estate AND reduce the chargeable amount. The intestacy rules completely prevent this planning. |
| Cohabiting partner (not married/CP) — any beneficiaries | NOTHING — cohabitees have NO automatic entitlement under the UK intestacy rules regardless of length of cohabitation | Depends on whether there are children (as above). If no children: parents; then siblings; etc. The cohabiting partner receives nothing under intestacy. | IHT cost of cohabitation vs marriage: if a cohabiting partner would have received the estate, the estate passes to whoever is entitled under the intestacy rules — potentially with IHT. No spousal exemption for the partner. A cohabiting partner who was financially dependent on the deceased may apply under the Inheritance (Provision for Family and Dependants) Act 1975 — but this is an expensive court process with uncertain outcomes and does not improve the IHT position. | Cohabiting couple, no will, no marriage: partner of 15yr receives NOTHING under intestacy. Entire estate to the deceased's parents or siblings (with IHT). The partner must apply under I(PFD)A 1975 for financial provision — expensive, uncertain. A will would have given the partner the estate (IHT-free if treated as equivalent of a cohabitee exemption — but note: NO spousal IHT exemption for cohabiting partners; any gift to a partner is a PET with the 7yr clock OR can be structured in the will to use the NRB). To get the equivalent of the spousal IHT exemption: MARRY or form a civil partnership. |
IHT on intestacy UK 2026. Administration of Estates Act 1925 (AEA 1925) as amended by Inheritance and Trustees' Powers Act 2014 (ITPA 2014 — in force 1 October 2014). England and Wales only (Scotland: Succession (Scotland) Act 1964; Northern Ireland: Administration of Estates Act (NI) 1955). Statutory legacy: £322,000 (since 26 July 2023 — Intestate Succession (Interest and Capitalisation) (Amendment) Order 2023 SI 2023/660). Spouse/CP definition: legally married spouse or civil partner at date of death (cohabitees excluded). Children (issue): all children equally regardless of birth order or gender; at 18 or on marriage. Half-siblings: half share of full siblings. Bona vacantia: estate goes to the Crown if no qualifying relatives. Spousal exemption: s18 IHTA 1984 — unlimited for UK dom spouse/CP; £325k for non-dom (or s267ZA IHTA election). RNRB (ss8D-8K IHTA): available on intestacy if QRP passes to direct descendants (s8K(3)) — possible if children inherit property. tRNRB: s8G IHTA — preserved if RNRB unused at first death; claimed by executor on second death (IHT435 — NOT automatic). tNRB: s8A IHTA — IHT402 claim. Deed of variation: s142 IHTA 1984; within 2yr of death; all affected beneficiaries must consent and sign; treated as if made by deceased; charity redirect triggers 36% rate (s36 IHTA); NRB DT possible via DoV; HMRC notification required within 6 months of DoV for IHT and 12 months for CGT; s62(6) TCGA 1992 for CGT treatment. Minor beneficiaries: court approval needed for variation (Variation of Trusts Act 1958). Cohabitees: Inheritance (Provision for Family and Dependants) Act 1975 — court application for financial provision; expensive; uncertain; does NOT create spousal IHT exemption. NRB: £325k (frozen to April 2030). 36% charitable rate: s36 IHTA — ≥10% of baseline to qualifying charity; requires a WILL with charitable legacy. IHT400: main IHT return. IHT421: HMRC direct payment scheme. s227 IHTA: instalment option. Interest s233 IHTA on late IHT.
Intestacy and IHT: The Full Picture
Why dying without a will increases your IHT bill
The UK's intestacy rules (Administration of Estates Act 1925, as amended by the Inheritance and Trustees' Powers Act 2014) determine who inherits when someone dies without a valid will. The rules follow a strict statutory order — and this order is not designed with IHT efficiency in mind. It is designed to reflect what Parliament considers to be the average person's presumed wishes. For IHT purposes, dying intestate creates several structural disadvantages: (1) No NRB Discretionary Trust on first death: a well-drafted will for a married couple typically leaves up to the NRB (£325k) into a Discretionary Trust on first death, with the remainder to the surviving spouse. This efficiently 'uses' the first NRB and keeps the trust assets outside the surviving spouse's estate. On intestacy, the statutory legacy goes directly to the spouse — no NRB DT opportunity. (2) No 36% charitable rate: the s36 IHTA reduced IHT rate (36% instead of 40%) only applies when at least 10% of the 'baseline' estate is left to qualifying charities. Intestacy does not include any charitable legacy — the 36% rate is permanently lost. (3) RNRB risk: the RNRB depends on the qualifying residential property passing to direct descendants. Under intestacy, if the estate passes entirely to the spouse (no children), the RNRB cannot apply on the first death (though the tRNRB transfers to the surviving spouse). (4) No flexibility for beneficiary circumstances: a will can include trusts for vulnerable beneficiaries, disabled dependants, minor children — providing flexibility that the intestacy rules cannot offer. (5) Cohabitees get nothing: a partner who is not married or in a civil partnership has no automatic inheritance right under intestacy — regardless of the length of the relationship.
The RNRB on intestacy — when it works and when it does not
The Residence Nil Rate Band (RNRB — ss8D-8K IHTA 1984) is available on intestacy in some circumstances, but NOT automatically and NOT in all situations. When RNRB IS available on intestacy: the deceased is survived by children (or other direct descendants as defined in s8K(3) IHTA) AND the qualifying residential property passes to those children under the intestacy rules. Under the intestacy rules: if there is a spouse AND children, the children receive 50% of the remainder above the statutory legacy — which may include a proportionate share of the property. If there are children only (no spouse): the entire estate including the property passes to the children — RNRB fully available. When RNRB is NOT available on intestacy: if the entire estate passes to the surviving spouse (no children): the property goes to the spouse, not to direct descendants; RNRB cannot be claimed at first death. However: the tRNRB is preserved for the surviving spouse's estate (s8G IHTA — the deceased's unused RNRB can be transferred to the surviving spouse's estate for use on the second death). Claim: on the second spouse's death, the executor must file IHT435 to claim the tRNRB — it is NOT automatic. If the estate passes to parents or siblings (no spouse; no children): RNRB is lost entirely — parents and siblings are not direct descendants.
How a deed of variation can rescue the IHT position after intestacy
A deed of variation (s142 IHTA 1984) allows the beneficiaries who inherit under an intestacy to redirect their inheritance within 2 years of the date of death — and for IHT and CGT purposes, the variation is treated as if the deceased had left the estate to the varied beneficiaries in their will (or, for intestacy, as if the intestacy had been in favour of the varied recipients). This is a powerful post-death rescue tool. Examples of using a DoV to fix intestacy IHT problems: (1) The cohabiting partner: if the estate passes to the deceased's parents under intestacy, the parents can execute a DoV redirecting the estate to the partner — treated as if the deceased had left it directly to the partner (but note: no spousal exemption applies to an unmarried partner even via DoV; gift to the partner via DoV is taxed as if a testamentary gift, but partner receives it rather than IHT-exempt transfer). (2) Charity redirect: an intestacy beneficiary (e.g., children) can redirect 10%+ of the estate to charity via DoV — triggering the s36 36% rate, which the intestacy could not achieve. (3) NRB DT creation: beneficiaries who inherited directly under intestacy can redirect up to NRB value into a trust via DoV — creating the NRB planning that the intestacy could not provide. Limits of DoV: all beneficiaries who would be affected must agree and sign. If the deceased's children are under 18: their consent cannot be given without court approval (Variation of Trusts Act 1958) which is costly and uncertain. A DoV cannot be used to benefit the deceased's estate (e.g., by redirecting inheritance back to a trust for the benefit of creditors). The DoV must be made within 2 years of death — this 2yr window is the only rescue opportunity; after it closes, the IHT position is fixed.
Frequently Asked Questions
Do you pay inheritance tax if there is no will?
Yes — dying without a will (intestate) does NOT exempt the estate from inheritance tax. The estate is still assessed for IHT at 40% on the taxable estate above the NRB (£325k). The intestacy rules (Administration of Estates Act 1925, as amended) determine who inherits — but the IHT liability is calculated on the estate as a whole. Spousal exemption: the spouse/civil partner's share under the intestacy rules is IHT-free (s18 IHTA). But the rest of the estate may be chargeable. Key IHT risk of dying intestate: no NRB Discretionary Trust planning on first death; no 36% charitable rate (no will = no charitable legacy = no s36 IHTA reduced rate); RNRB may be lost if the property does not pass to direct descendants. A deed of variation (s142 IHTA — within 2yr of death) can partially rescue the position.
What happens to inheritance tax if you die without a will and have a partner but are not married?
If you die without a will (intestate) and you are cohabiting but not married and not in a civil partnership: your cohabiting partner inherits NOTHING under the UK intestacy rules. The estate passes to your children (if any), then parents, then siblings — not to your partner. IHT: depends on who inherits. If children inherit: they pay IHT above the NRB/RNRB. If parents inherit: no spousal exemption; IHT at 40% on excess above NRB. Your partner may apply under the Inheritance (Provision for Family and Dependants) Act 1975 for financial provision — but this is a court process (expensive and uncertain) and does NOT create a spousal IHT exemption (unmarried partners do not get the unlimited spousal exemption — s18 IHTA only applies to married spouses and civil partners). To protect your partner: MAKE A WILL. To get the IHT spousal exemption: MARRY or form a civil partnership.
Is the Residence Nil Rate Band (RNRB) available if there is no will?
The RNRB (ss8D-8K IHTA 1984) is potentially available on intestacy IF the qualifying residential property passes to direct descendants (s8K(3) IHTA — children, step-children, adopted/foster children, grandchildren etc.) under the intestacy rules. If the deceased is survived by children and a spouse: under intestacy, children receive 50% of the remainder above the statutory legacy (£322k) — if the property forms part of this, RNRB may be partially available. If survived by children only: the property passes entirely to the children and RNRB is fully available. If survived by spouse only (no children): the property passes to the spouse and RNRB is NOT available on the first death (but tRNRB is preserved for the second death — IHT435 claim required; not automatic). If survived by parents or siblings only: RNRB is lost entirely (not direct descendants).
What are the UK intestacy rules for inheritance in 2026?
Under the Administration of Estates Act 1925 (as amended by the Inheritance and Trustees' Powers Act 2014 — in force 1 October 2014), the intestacy rules provide (for England and Wales): if survived by spouse/CP AND children: spouse receives personal chattels + statutory legacy £322,000 (since 26 July 2023) + 50% of remainder above the legacy; children receive the other 50% of remainder equally at 18. If survived by spouse/CP only (no children): spouse receives the ENTIRE estate. If survived by children only: children receive the entire estate equally at 18. If no spouse/children: parents; then siblings (full blood then half blood); then grandparents; then aunts/uncles; then the Crown (bona vacantia). Cohabitees: NO automatic entitlement regardless of relationship length. Scotland (different rules) and Northern Ireland (different rules) have their own intestacy provisions. IHT applies in all cases regardless of intestacy.
Can you use a deed of variation to fix inheritance tax problems after intestacy?
Yes — a deed of variation (DoV — s142 IHTA 1984) allows beneficiaries who inherited under intestacy to redirect their inheritance within 2 years of the date of death. For IHT (and CGT under s62(6) TCGA 1992) purposes: the variation is treated as if the deceased had originally left the estate to the varied beneficiaries. This can fix several intestacy IHT problems: (1) Redirect to charity to trigger the 36% rate (s36 IHTA — if ≥10% of baseline goes to charity). (2) Create an NRB Discretionary Trust (up to £325k into trust — treated as if left in the will). (3) Redirect to the cohabiting partner (though the unmarried partner exemption = no IHT benefit from this — no spousal exemption applies). (4) Restructure the children's shares to improve IHT efficiency. Limits: all beneficiaries whose interests are reduced must consent and sign. Minor beneficiaries (under 18): court approval needed (Variation of Trusts Act 1958) — expensive and uncertain. Must be executed within 2yr of death — the window cannot be extended. HMRC must be notified within 6 months of the variation (for IHT) and 12 months (for CGT).
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