Many will have read about the recent events regarding the chief executive of Compass Group, Richard Cousins and his family.
Mr Cousins, his two grown-up children and his partner and daughter were killed in a sea plane accident in Australia. The accident occurred on 31 December 2017, but Mr Cousins’ death has made the news once more because his will left a reported £41m to Oxfam under what is known as a disaster provision.
What is a disaster provision?
Mr Cousins’ will is available as a matter of public record, as is the grant of probate. His will was made the year he died and incorporated a provision to provide for a ‘disaster scenario’ where he is not survived by his children or grandchildren.
This type of clause is commonly referred to as a disaster provision or default clause. These clauses are a backstop in the event that a person’s named beneficiaries (whether family members or not) do not survive the deceased. It is not unusual for people to name charities in these circumstances.
Thankfully it is relatively rare for disaster clauses to come into effect. Cases where such provisions have been relevant have been the Boxing Day tsunami in 2004 and the Malaysian plane crash.
That said, these clauses can also be operative in the event that a person perhaps only names one beneficiary in their will, has no remaining family and that sole beneficiary then predeceases them.
What happens without a will or disaster provision?
Recent reports place the number of people dying without a will at nearly two-thirds of the population. When someone dies without leaving a will the law sets out an order of inheritance, known as the intestacy rules.
These rules will also apply if a person has a will, but it does not contain a disaster provision, and all their beneficiaries die before them or at the same time.
In the event a person is not survived by a spouse/civil partner or issue (children and grandchildren), the order of entitlement is as follows:
- Parents of the deceased.
- Brothers and sisters of the deceased (if any of them have died before you then their share passes to their issue).
- Half-brothers and sisters of the deceased (same rules apply regarding their issue if they die before you).
- Grandparents of the deceased.
- Aunts and uncles of the deceased (if any of them die before you then their share passes to their issue).
- The Crown (bona vacantia).
