The Rules of Intestacy apply when someone dies without making a valid Will. These rules will dictate who administers the estate, who inherits and how much they will receive: this may not reflect your wishes or be tax efficient.
On 1 October 2014 the Intestacy rules changed.
The table below highlights the key changes on intestacy:
Deceased dies, leaving | Rules from 1 October 2014 | Old rules |
A spouse and children | Spouse receives: Statutory legacy of £250,000Personal chattels
Entitled to half of the residuary estate outright
Children entitled to remaining half of residuary estate at 18 |
Spouse receives:Statutory legacy of £250,000Personal chattels
Life Interest in half of residue which would then pass to the children on subsequent death
Children entitled to remaining half of residuary estate at 18 |
A spouse but no children (parents and/or siblings survive) | Spouse receives:The whole estateParents/siblings do not receive anything
|
Spouse receives:Statutory legacy of £450,000Personal chattels
Half of residue
Parents receive half of residue equally (or siblings if no surviving parents) |
Intestacy does not help those who are not married or in a civil partnership.
It is therefore so important to make a Will to ensure your wishes are carried out. A Will, together with a Lasting Power of Attorney, should be considered an essential part of your family’s future wealth planning. We will be happy to introduce you to a trusted solicitor to create these essential documents.