Intestacy payment increase, but no substitute to making a valid Will
The Government has announced changes to the intestacy rules that apply when somebody dies without leaving a Will.
As from 26 July this year, a surviving spouse or civil partner will be entitled to a payment of £322,000 where the deceased’s estate does not exceed this amount, which is an increase from the previous amount of £270,000.
Stephanie Chung, associate in the private client team at Wake Smith, welcomes the increase but says it is no substitute for making a valid Will.
- The statutory legacy is the amount a surviving spouse or civil partner is entitled to receive when a person dies without making a valid Will (known as intestacy) leaving children.
- The rules of intestacy provide that the estate is distributed in a particular way depending on the surviving family and the amount of the estate.
- If the deceased had no children the whole estate will still pass to the surviving spouse or civil partner. The statutory legacy will not apply.
- If the deceased had children, the surviving spouse or civil partner will inherit the deceased`s personal property, the statutory legacy of £322, 000 and 50% of the remainder. The remaining 50% passes to the children equally.
- If the deceased is unmarried, with no children, the intestacy rules provide for the estate to pass in a particular hierarchy: parents first, and if no surviving parents, to brothers and sisters (or more distant descendants). There is no provision for cohabiting partners, step-children or close friends.
Stephanie said: “The hierarchy is fixed and the amount which passes to spouses and civil partners are prescribed by the law.
“The rules of intestacy do not distinguish between those persons who may have had a closer or more positive relationship with the person who died, or those who may have become estranged.
“Ensuring that your estate passes to your loved ones is simple: just make sure you’ve got a legally binding Will in place before you die.”
For further information please contact Stephanie Chung at Wake Smith Solicitors on 0114 224 2114 or email [email protected]
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