Intestacy

Research from organisations such as Co-op Legal Services and the life insurance company, Canada Life, reveal that around 60% of UK adults die without leaving a will.

A will is a document which someone prepares during their lifetime which sets out how their estate is to be distributed upon their death. It can also aid with tax planning and enables the person making the will to specify who will manage their estate when they die (the Personal Representatives) and can cover such issues as appointment of guardians for children and making charitable gifts. None of this is possible if someone does not make a will. This is because in the absence of a will, a strict list of entitlement known as the 'intestacy rules' sets out who receives the assets of someone who has died without a will (or a valid will).

Broadly, other than a spouse or civil partner, the assets of the deceased pass to their blood relatives under the intestacy rules.

For many years, the amount of money that the spouse or civil partner could inherit if the deceased left children remained unchanged at £270,000. This is known as the 'statutory legacy.'

However, from 26 July 2023, the statutory legacy has increased to £332,000. This is an important change meaning that a spouse or civil partner will be entitled to more of the estate of the deceased where there are children. If the estate of the deceased is valued at under £322,000, this effectively means that the surviving spouse or civil partner will inherit everything.

The intestacy rules do not cater for more complex family relationships. For example, stepchildren of the deceased are not included in the intestacy rules, nor are cohabitees. This means that a couple could live together as man and wife for many, many years but the survivor of them would inherit nothing if the deceased died without leaving a will. This may leave the survivor in the unenviable situation of having to make a claim against the estate of the deceased.

Failing to take legal advice on the death of a loved one can be a false economy. Important rule changes could be missed along with potential claims against the estate.

Better still, people should take advice whilst they are alive and have a will professionally prepared.

To discuss this or any other wills and probate matter, contact us.