What is Intestacy and the Statutory Legacy?
Where an individual passes away without leaving a will, they are known as dying “intestate”. Dying intestate results in a deceased’s persons estate passing in accordance with certain rules, those being the intestacy rules that are set out in Section 46 of the Administration of Estates Act 1925.
Who inherits will be determined by the rules set out in Section 46 and may mean an estate does not pass in accordance with a person’s wishes.
If there are surviving children, grandchildren or great-grandchildren as well as a surviving spouse or civil partner, the surviving spouse or civil partner will be entitled to the following under the intestacy rules:
- All the personal property and belongings of the person who has died;
- A statutory legacy;
- Half of the remaining estate (with the other half of the remaining estate passing to the intestate’s children and equal shares if there is more than one).
The children or any living descendants includes legally adopted children but does not include stepchildren and their descendants.
Under the intestacy rules only married or civil partners can inherit and this does not apply to partners that are only cohabiting.
Change in Legislation
The statutory legacy received by the surviving spouse or civil partner is set out in statute and could mean that a spouse or civil partner are left without an adequate amount from the estate.
The statutory legacy sum at the start of 2023 was set at £270,000. New legislation brought into force from 26th July 2023 has increased the statutory legacy to £322,000.
The previous statutory legacy sum was set in January 2020. There is a requirement for this to be reviewed every five years or where the inflation rate increases by 15% or more from the base rate applicable to when the statutory legacy was previously set.
What this means for you
The increase to £322,000 means that a spouse or civil partner will now receive a higher share from an intestate estate before the deceased’s children receive their share.
Unfortunately, the law has not changed in relation to cohabitating partners and therefore, a cohabitating partner often know as ‘common law husband and wife’ would still have no automatic right under an intestate estate.
Making a Will
Although the increase is a positive, we still recommend that you do not leave it to chance as you want your wishes to be met and those you care for provided for when you pass away. We always recommend putting in place a Will for yours and your family’s protection.
Contact our team today to start your journey creating a Will and putting measures in place for the people you love.
