The importance of estate planning: Lessons from Liam Payne’s passing

What happens when someone dies without a will?

Under UK intestacy laws, when an individual passes away without a will, their estate is distributed according to a strict legal framework. If the deceased has no surviving spouse or civil partner, their children typically inherit the estate. In Payne’s case, his eight-year-old son, Bear, whom he shared with singer Cheryl Cole, is expected to inherit the majority of his father’s fortune. However, because Bear is a minor, he cannot access the funds directly. Instead, the estate is held in a trust, managed by appointed administrators - Cheryl and music industry lawyer Richard Bray which Bear will be able to access once he turns 18.

It is worth noting that if Payne had made a will he could have increased the age Bear could access the money to 21 or 25 for example ensuring he had enough time to mature before receiving such a large amount of money.

The role of estate administrators

Cheryl and Bray have been granted limited authority over Payne’s estate, meaning they can preserve assets but cannot distribute them until a general grant is made. The limited grant is a temporary urgent one, called a grant ad colligenda bona defuncti - "to collect in the goods of the deceased". This allows them to administer the estate for a limited and particular purpose. Once they are ready, they will need to apply for a full grant and this will replace the grant ad col.

Potential legal challenges

While Payne’s estate is expected to go to his son, intestacy can lead to disputes. Individuals who were financially dependent on the deceased may have grounds to claim reasonable financial provision under the Inheritance (Provision for Family and Dependants) Act 1975. Payne’s girlfriend, Kate Cassidy, could potentially contest the estate if she can prove financial dependence. Such claims require substantial evidence and must be filed within six months of the Grant of Letters of Administration. Cassidy would have to qualify as a co-habitee for more than two years or prove she was being financially maintained, and the court would need to be satisfied it was justified taking money away from Bear.

Also, if Payne owned joint property with anyone, such as his fiancée, she will inherit it automatically by survivorship, as this passes outside the intestacy rules.

Why estate planning matters

Payne’s case underscores the importance of having a will. Without one, loved ones may face legal hurdles, delays, and potential disputes. A well-drafted will ensures that assets are distributed according to personal wishes rather than default legal guidelines. It also allows individuals to set up trusts, specify guardianship for minors, and minimize inheritance tax liabilities.

Estate planning is not just for the elderly or ultra-wealthy, it’s a critical step for anyone who wants to protect their assets and provide for their loved ones. Whether through a will, trust, or other legal arrangements, taking control of one’s estate ensures that wealth is distributed as intended rather than dictated by intestacy laws.

If you haven’t yet considered estate planning, now is the time. Contact our expert team today to ensure your legacy is protected.