Changes to Intestacy Law

From 1st October 2014 the law relating to intestacy changed. The intestacy provisions provide a framework outlining what happens to a person's estate when they die without a will. The main changes to the Intestacy Rules are:- 1. Where the person who dies without a will is married, or in a civil partnership and does not have children all of the estate passes to the surviving spouse or civil partner. -The previous position was that the spouse or civil partner received £450,000, personal belongings and half of the remaining assets of the estate. The other half would go to the parents of the deceased, or in the event that they had already died, then their siblings or their children. 2. If the person who dies without a will has both a spouse and children, then the surviving spouse or civil partner takes the statutory legacy (currently £250,000), personal belongings and half of the residuary estate. The other half of the residuary estate passes to the intestate's children. -The previous position was that the spouse or civil partner received the statutory legacy and then a 'life interest' in half of the estate (meaning they were entitled to income only, potentially tying this half of the estate up for years, as the children received the underlying capital on the death of the spouse), the other half went to the children absolutely. The changes make things slightly more straightforward, however if you die without a will it is quite likely that these statutory provisions will be less than ideal for your personal circumstances. They may also cause practical problems for those you leave behind and may lead to loved ones having to consider court action. A common misconception which prevails, is that a cohabitee has automatic rights to their partner's estate on death, if they have lived together for many years. This is not the case and the new intestacy provisions have not changed that. If you are living with a partner then it is vital that you consider what would happen on the death of either one of you and make sure that you have the right arrangements in place, through a valid will. Another important consideration that people need to be aware of is that if you die, separated from your spouse or civil partner, then your whole estate would pass to them, unless you are actually divorced. Clearly nothing beats taking the time to consider your personal circumstances, assess your financial position and take stock of who you need to provide for. Then seek the advice of a qualified, insured solicitor to prepare a will that meets with all of your requirements. Wake Smith LLP has a very experienced Private Client team, who would be very happy to advise you in relation to your will. For further information or if you have any questions please contact Louise Rudkin at [email protected] or call 0114 266 6660.