Update on the Intestacy Rules – 6th February 2020

When someone dies without a Will, this is known as dying intestate. In these circumstances, the law sets out who is entitled to inherit from the deceased’s estate known as the ‘intestacy rules’.

Current Provisions

Currently, the law confirms that when a person dies without a Will, the first £250,000 (known as the statutory legacy) of the deceased’s estate will pass to a surviving spouse or civil partner. Anything above this threshold will be divided so that the surviving spouse or civil partner will receive 50% (together with the first £250,000) and any children will receive the remaining 50% equally between them. In the event that there aren’t any children, then the spouse or civil partner will receive the entire estate.

Upcoming Changes

From 6^th February 2020, the statutory legacy is increasing from £250,000 to £270,000. This essentially means that if a person dies without a Will, their spouse or civil partner will receive the first £270,000, with anything above this threshold being divided as outlined above.

Implications

This may be a welcome change for those facing the unexpected death of a spouse or civil partner, but still highlights the importance of preparing a Will to ensure that your estate will ultimately pass in accordance with your wishes.

For example, the intestacy rules may still not provide adequate provision for a surviving spouse or civil partner and could leave them in a vulnerable position where they have to sell their home, or raise enough equity, in order to release funds due to the other beneficiaries. Furthermore, the intestacy rules do not provide for those who are cohabiting which too leaves cohabitees vulnerable on the death of a partner.

If you’re looking to put a Will in place, or you’re considering updating your current Will, speak to our experienced Private Client team today on 01908 660966 / 01604 828282 or at wills@franklins-sols.co.uk