Rising property and savings values are leaving more wealthy families caught by intestacy rules

The number of wealthy people dying without a valid will has more than doubled in just two years, according to new figures.

Data from His Majesty's Courts and Tribunals Service (HMCTS) shows 781 estates worth more than £1million were left intestate last year, up from 332 in 2023.

The increase mirrors a wider trend across all wealth brackets.

Overall, the number of estates left without a valid will rose from around 29,000 in 2023 to more than 43,000 last year.

Rising house prices and stronger returns on cash savings have pushed more estates above the £1million mark, often without families realising the value of their assets.

Freedom of Information data obtained by Co-op Legal Services also found that the number of grants of letters of administration issued by HMCTS has risen sharply since 2020.

Legal experts said increasing asset values are drawing more families into the inheritance tax system.

David Fenwick, Senior Solicitor at Co-op Legal Services, said: "Rising asset values, particularly property and savings, mean more estates now require formal legal intervention, yet many people underestimate their wealth and decide not to make a will."

Experts also pointed to the long-standing freeze on inheritance tax thresholds.

Mark Chandler, Chartered Financial Planner at Shackleton, said: "Fiscal drag has steadily brought more families into scope, with the standard nil-rate band having been frozen for many years despite significant growth in property prices."

Couples can generally pass on assets, including a family home, worth up to £1million to direct descendants before inheritance tax becomes payable.

However, Mr Chandler said rising property prices were "only part of the story".

He added: "We continue to see a surprising number of people with substantial wealth who have never made a will.

"Some people dislike dealing with solicitors, some don't like talking about death, some find discussions around family arrangements uncomfortable, and many simply never get around to doing it."

Foreign nationals who move to Britain can also face additional challenges when it comes to estate planning.

Jamie Mathieson, of law firm JMW, said: "Larger estates often have a foreign element and individuals coming to the UK to live with assets often understandably do not understand the laws in the UK regarding death and intestacy."

The cost of preparing a will is typically far lower than resolving an estate where no will exists.

Drawing up a will in Britain generally costs between £750 and £1,500, while probate fees in straightforward cases usually range from £3,000 to £5,000.

By comparison, administering an intestate estate can cost more than £10,000.

Mr Chandler said larger estates can also take significantly longer to administer because identifying the correct people to act as administrators is often more complex.

He said: "Where inheritance tax is due, those delays can become expensive. Interest can accrue on outstanding liabilities, while professional costs and financing costs can further reduce the value ultimately passed to beneficiaries."

The issue could become more significant from April 2027, when pensions are due to become subject to inheritance tax, potentially bringing more estates into scope.

While some banks will release limited funds without a formal grant of representation, with some allowing up to £30,000 to be accessed, estates valued below £5,000 do not require a grant at all.

A Ministry of Justice spokesman said: "Making a will is one of the most important steps people can take to protect their families and ensure their wishes are respected."