Recent changes to the intestacy rules for a surviving spouse or civil partner

As you may be aware, if you pass away without a valid Will, you are deemed to die ‘intestate’ and your estate will be divided and dealt with in accordance with the intestacy rules of entitlement, which are dealt with under the Administration of Estates Act 1925. These rules strictly state who can inherit your estate and the amounts that they will receive, based on your estate value at date of death. See our Intestacy Flowchart. 

Please note that any jointly owned assets will pass by survivorship to the surviving joint owner and outside the rules of intestacy.

What will my spouse/ civil partner receive?

The government have recently increased the ‘statutory legacy’ which is the amount that your surviving spouse or civil partner will receive from £270,000 to £322,000 (for deaths after 26 July 2023). This amount will be deducted first before any other division is calculated.  The survivor will also receive all of your personal possessions.

If you do not have biological or adopted children at the date that you die, your surviving spouse or civil partner will inherit your whole estate.

What will my children receive?

If you die leaving biological or adopted children as well as a surviving spouse or civil partner, the remainder of your estate will then be split as to 50% for the surviving spouse or civil partner and 50% for the children (and if more than one in equal shares).

If any child has predeceased you leaving surviving grandchild(ren), they will inherit the share of your estate that their parent would otherwise have received when they reach the age of 18.  If any grandchild has predeceased, leaving surviving great-grandchildren, they will inherit in place of that grandchild at the age of 18.

What if I am not married but am in a long-term relationship?

In these circumstances, your surviving partner will receive nothing from your estate under the intestacy rules.

What if I am not married but have children?

In this case your biological or adopted children will receive your whole estate in equal shares at the age of 18.

If any child has predeceased you leaving surviving grandchild(ren), they will inherit the share of your estate that their parent would otherwise have received when they reach the age of 18.  If any grandchild has predeceased, leaving surviving great-grandchildren, they will inherit in place of that grandchild at the age of 18.

What if I am unmarried with no children?

In this situation, depending on who has survived you, your estate will pass down the bloodline in accordance with the strict intestacy rules, to potentially benefit:

• your parents;
• siblings or their children;
• half-siblings or their children;
• grandparents;
• aunts and uncles or their children; or
• the Crown.

You may feel that the above does exactly what you want in relation to your estate.  However, there are additional reasons to consider preparing a Will, namely that:

• You can choose who to appoint as your executors;
• You can divide your estate so as to leave cash gifts or gifts of personal items;
• You can appoint guardians for any minor children;
• You can choose to leave gifts to a surviving partner or friends and charities who might otherwise receive no benefit; and
• You can consider your options in relation to tax planning or the preservation of assets for the future generation.

If you are concerned about the above or would like further advice on the preparation of a Will, please contact Christa Foster on 01689 887884 and ask to make an appointment with a member of our Private Client Team.