It has been announced that Liam Payne’s fortune will pass under the rules of intestacy as he died without a Will. The One Direction star passed away tragically last October 2024, age 31, after falling from his hotel balcony in Argentina. Vault Private Client’s Lucy Cresswell looks at what the intestacy rules are and how they will affect Liam’s £24.3m fortune.
Liam left behind many loved ones who paid their respects to the star, including ex Cheryl, son Bear and former bandmates including Harry Styles. It has now been revealed that his estate will pass in accordance with the rules of intestacy as he died without a Will (intestate).
Without a Will, Liam’s estate will be distributed according to the rules which results in his loving, long-term girlfriend, Kate Cassidy being left with nothing.
It has been reported that ex Cheryl, mother of Bear and lawyer, Richard Bray are joint administrators. They will be in charge of collecting in his assets and distributing them in accordance with the rules of intestacy and also for applying for the Grant of Letters of Administration.
Liam, a thriving, young superstar had not made a Will in his lifetime, despite his large fortune (resulting in his long-term girlfriend Kate, left set to receive nothing from his estate). The intestacy rules are laid down by statute, which can result in loved ones, such as Kate with nothing. As the pair were not married or in a civil partnership, she holds no rights to inherit a share of his estate, despite what his wishes may have been.
Liam’s estate will be distributed to his son Bear. However, given that Bear is a minor, the inheritance will be held on trust until he reaches 18 years old. In the period up to him receiving the money it will be held on trust for his benefit by Cheryl and Richard as Trustees. The law states that Bear will be absolutely entitled to the fortune, and any income arising from it on his eighteenth birthday. This is clearly an undesired outcome as it raises concerns about a child receiving such a substantial amount of money at just 18 years old. If Liam had made a Will, he could have specified the particular age Bear would inherit (at a time when he may be more financially mature) and could also have made provision for him to drip feed the money if and when it was appropriate to do so. Another option that Liam could have chosen in his Will would be to use a discretionary trust. Stars such as Liam with a large fortune would almost always include a trust structure to ensure that the funds were ring-fenced to protect against financial immaturity, divorce proceedings, or perhaps alcohol and dependency issues. The trust structure strikes a balance for the Deceased to ensure that the beneficiary (Bear) has access to funds when required but they are distributed at the discretion of the trustees when it is appropriate to do so.
It is not uncommon for stars like Liam Payne and other wealthy individuals to hold off making a Will (sadly this is often until it is too late). However, Liam’s death highlights the importance of making a Will to ensure that your loved ones, (who may not inherit under the intestacy rules) inherit a share and that your children do not come into a substantial amount of money with no wealth protection.
Liam’s story is one of many that sadly highlight the pitfalls of not making a Will. Our lawyers at Vault Private Client are able to advise you on what would happen if you pass away without a Will and also the implications the intestacy rules have on you and your family. Vault Private Client can provide you with clear, concise advice and offer a seamless service to ensure that your Will sets out your wishes to ensure protection, peace of mind and also to help guarantee that your estate passes in accordance with your wishes.
Please reach out to our solicitors on [email protected] for your free initial meeting.
