Changes to the Intestacy Laws
Spouses and civil partners are to receive more when partner dies without leaving a will. Married couples and civil partners whose spouse or civil partner dies without leaving a will are to benefit from an increase in the statutory legacy under proposals published by the Government. The Government has acted after concerns that the levels of the statutory legacy, currently set at £125,000 and £200,000, were too low. Justice Minister Bridget Prentice said: "This increase will give extra protection to married couples and civil partners whose spouse or civil partner dies without making a will. But it also highlights how important it is for both men and women to make arrangements for their loved ones in the event of their deaths. "Married couples and civil partners should not assume that when their spouse or civil partner dies, they will automatically be entitled to everything. It is up to individuals to make sure that their wishes are respected by making a will. "My message to people is, don't leave it to chance. Make sure your loved ones are properly provided for by leaving a will." From the 1 February 2009 the new levels of the statutory legacy will increase to £250,000 and £450,000."The intestacy rules are complex and this is a simplified explanation:Prior to 1 February 2009If the deceased had children, a spouse or civil partner will receive the deceased's personal possessions,the first £125,000 of the estate and a life interest (the use of the assets, but not their ownership) in half of the rest of the estate.If the deceased did not have children, but had a surviving parent, sibling or nephew or niece, a spouse or civil partner will receive the deceased's personal possessions,the first £200,000 of the estate and a life interest (the use of the assets, but not their ownership) in half the balance.Note that in some (but not all) cases jointly owned assets may pass to the co-owners, irrespective of the above rules.From 1 February 2009If the deceased had children, a spouse or civil partner will receive the deceased's personal possessions,the first £250,000 of the estate and a life interest (the use of the assets, but not their ownership) in half of the rest of the estate.If the deceased did not have children, but had a surviving parent, sibling or nephew or niece, a spouse or civil partner will receive the deceased's personal possessions,the first £450,000 of the estate and a life interest (the use of the assets, but not their ownership) in half the balance.Note that in some cases jointly owned assets may pass to the co-owners, irrespective of the above rules.What action should you take?Even with the changes in law, the rules of intestacy are rarely what people want. They can also trigger an avoidable tax liability. In every case when someone has assets over £5,000 or children under 18 we strongly recommend making a Will to ensure it is your wishes, rather than government rules which determine who gets what.Please contact us on 0800 917 4542 for further information.