Wills, Trusts & Probate - Recent News

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Dying without having made a will - New Rules on Intestacy

Where a person dies without having made a Will (intestacy) on or after the 1st of February 2009, the legacies payable to surviving spouses or civil partners are increased. The limits were last increased in 1993 and were regarded as well overdue for review.

Before the 1st of February 2009 where the deceased left a surviving spouse or civil partner and children, the amount of the legacy payable to the surviving spouse or civil partner is £125,000. On and from the 1st of February 2009, the legacy payable to the surviving spouse or civil partner is £250,000.

Before the 1st of February 2009 where the deceased leaves a surviving spouse or civil partner and parents or siblings but no children, the legacy payable to the surviving spouse or civil partner is £200,000. On and from the 1st of February 2009, the legacy is £450,000.

Whilst the legacies have been increased, the overall solution as to who benefits on intestacy is often far from satisfactory. Consider these examples:-

  1. If there are no available relatives, everything goes to the state. In a similar circumstance were a Will drawn, the deceased could, perhaps, have nominated a charity or charities.
  2. Where the deceased leaves a spouse or civil partner and children, the spouse/partner receives the personal chattels, £250,000 if the death occurred after 1 February 2009 and the right to receive the income of the capital of the remainder of the deceased’s estate. The other half of the deceased’s estate will be shared equally between the children (this includes illegitimate and adopted children but not step-children). When the surviving parent dies, the capital supporting their life interest also passes to the children.
  3. Where the deceased leaves a spouse or civil partner and relatives but no children, the spouse/partner receives the personal chattels, a legacy of £450,000 if the death occurs after 1st of February 2009 and one half of the remainder of the estate. The surviving relatives receive the other half of what is left according to a fixed priority list – for example, if the parents are still alive, they will receive but if they have died, the brothers and sisters or their descendants will receive the half share.

The advice we give to our clients is unchanged as a result of the new Rules: a Will should be made by anyone who has married and particularly an adult who has children, either within or outside of a marriage. Relying upon the Rules of Intestacy, may not give protection for those nearest and closest to you.