Liam Payne left behind an estate worth more than £24million, official records have shown – but had no Will in place to confirm what should be done with it or who should benefit.
The tragedy of the former One Direction singer’s untimely passing last year shocked the world. The knowledge now that he also died “intestate” shines a spotlight on the need to make the necessary preparations for after you are gone.
Our advice will always be to prepare for the unexpected and have an up-to-date Will in place, but things don’t always pan out as we would hope. Georgia Wookey, Senior Associate in Thrings’ Private Wealth Disputes team, takes a look at what people can do if a loved one dies without a plan in place.
What is happening to Liam Payne’s estate?
In the event someone dies without a valid Will in place, their estate will be distributed in accordance with statutory rules which in most cases would mean the surviving children if there is no living spouse or civil partner.
This is exactly what is set to happen to Payne’s £24million fortune – which includes money, property and possessions – going to his eight-year-old son Bear, with the child’s mother, former Girls Aloud singer Cheryl, and music industry lawyer Richard Bray acting as administrators and trustees of his estate until Bear turns 18.
This leaves Payne’s unmarried partner and family, who might have been named as beneficiaries in a Will, without any form of inheritance.
In addition, it also leaves Payne’s estate with a significant tax bill due to no potential efficiencies having been prepared for through the Will making and estate planning process.
What can be done?
Albeit Payne would no doubt have wished to provide for his son, Bear, the lack of a Will has set in motion a process of automatic allocation that is outside of the family’s control and does not take into account whether he may have wished to also provide for his girlfriend, Kate Cassidy, parents and/or sisters. Had Payne been financially providing for his girlfriend, and/or his family, during his lifetime, they may have a claim based on this fact.
Anyone finding themselves in such a situation could have a claim under the Inheritance (provision for family and dependants) Act 1975 for reasonable financial provision.
Such a claim applies to only certain categories of people, but this includes unmarried partners who have been living together for at least two years prior to the deceased’s death and those which were being financially maintained (either in full or in part) by the deceased before they died.
Factors that a court would consider include the size of the estate, the applicant’s financial needs and resources, the financial needs and resources of any beneficiaries or other potential applicant’s, the applicant’s physical and mental health and that of any other parties, and any obligations the deceased had towards them.
Prepare early, make a Will
Even with the possibility of a claim being made, the best option for everyone (regardless of wealth or status) is to have a valid and up-to-date Will in place.
Had Payne made a Will, he could have allocated his fortune amongst his loved ones to ensure they were all looked after, ensured tax efficiencies were considered and avoided potentially relationship-damaging disputes. He could also have placed Bear’s inheritance into trust with added restrictions so that he wouldn’t receive such a large sum at such a young age.
Whether you are facing conflict over an inheritance or have concerns over someone’s capacity, Thrings’ Private Wealth Disputes lawyers provide expert guidance to protect your interests. By offering practical, clear and compassionate advice on matters related to contentious Wills and Probate, the team help you navigate these sensitive issues with confidence and security. For more information or to discuss your estate planning needs, get in contact today.
For advice on Wills, Trusts and Estate Planning, please contact our Private Client team.
