What happens to a shareholder's shares when they die
It’s more common than you might think for someone to pass away without leaving a valid will. In England, this is known as dying intestate, and in such cases, the law decides how the estate will be handled and who inherits.
Who Manages the Estate?
If there’s no will, there’s no named executor. Instead, a close relative—often a spouse, child, or another family member must apply to the Probate Registry for a Grant of Letters of Administration. This document authorises them to act as the estate’s administrator.
The administrator has responsibilities similar to an executor:
Gathering and valuing assets
Paying debts and taxes
Distributing what remains according to intestacy rules
The role can be complex, particularly when property, businesses, or multiple heirs are involved.
Applying for a Grant of Letters of Administration
The process resembles applying for probate when a will exists. The main steps are:
Check if it’s required – Smaller estates or jointly owned assets (like a joint bank account) may not need a grant.
Value the estate – Identify all assets and liabilities.
Submit the application – Apply online or by post, with the death certificate, estate valuation, and a fee (currently £300 for estates worth more than £5,000).
Receive the grant – Once approved, the administrator has the authority to act.
Administer the estate – Collect assets, settle debts, and distribute what remains.
This process may take months, particularly with complex estates.
How Assets Are Shared
The intestacy rules set out a strict order of inheritance:
Spouse or civil partner: If no children, they inherit everything. If children exist, the spouse receives all personal belongings, a statutory legacy of £322,000, and half the remainder. The other half goes to the children.
Children: If no spouse or civil partner survives, children share the estate equally.
Other relatives: If no spouse or children, the estate passes down a hierarchy parents, siblings, nieces/nephews, grandparents, aunts/uncles, and so forth.
No relatives: If no eligible family exists, the estate passes to the Crown under a process called bona vacantia.
A crucial point: unmarried partners do not automatically inherit, even if they lived with the deceased for many years. This often leads to disputes or financial hardship.
The government provides an online tool to check who can apply for probate and who is entitled to inherit under intestacy.
Why Having a Will Is Important
Dying intestate often produces results the deceased would not have chosen. It can:
Exclude unmarried partners or stepchildren
Cause disagreements among relatives
Delay the administration of the estate
Making a will allows you to:
Decide who inherits your estate
Provide for your partner, children, and loved ones
Appoint guardians for children
Simplify the probate process
Above all, a will ensures your wishes are followed and offers peace of mind for those you leave behind.
About the Author
James McMullan, Partner & Head of Private Client at RIAA Barker Gillette UK, began his career in family law before expanding into all areas of private client work. His expertise includes estate planning, inheritance tax, powers of attorney, trusts, probate (including disputes) and wills.
James focuses on understanding his clients’ goals from the outset and resolving matters effectively often through alternative dispute resolution rather than costly court proceedings.
Note: This article is not legal advice; it provides information of general interest about current legal issues.
Author
Partner & Head of Private Client at RIAA Barker Gillette UK
Join our network of entrepreneurs and benefit from a range of support including an ecosystem of trusted partners, our weekly blog, plus webinars and whitepapers on the leading challenges founders face when scaling businesses.
