The Updated Rules of Intestacy – how changes to the intestacy rules may affect you
25 September 2023
Following the government’s passing of the Administration of Estates Act 1925 (Fixed Net Sum) Order 2023, the current statutory legacy, in cases of intestacy increased from £270,000 to £322,000. This means that the spouse will receive a higher sum from the Estate before the children receive their share.
The rules of intestacy are a set of legislative rules which apply to an Estate, when a person dies without a valid Will. Such a person is deemed intestate. The intestate rules determine not only who will be responsible to administer the Estate, but who is eligible to inherit from the Estate.
Partners can also inherit an Estate under the rules of intestacy, only if they are married or in a civil partnership at their partner’s time of death. Therefore, if a person is divorced or if an individual’s civil partnership has legally ended, that individual can’t inherit under the rules of intestacy.
Partners who separated informally can still inherit under the rules of intestacy, however, cohabiting partners (sometimes wrongly called ‘common-law’ partners) who were neither married nor in a civil partnership, can’t inherit under the rules of intestacy.
If there are surviving children, grandchildren, or great grandchildren of the person who died and the estate is valued at more than £322,000 (the statutory legacy), the remaining partner will inherit: all the personal property and belongings of the person who has died; the first £322,000 of the estate; and 50% of the remaining estate. The progeny (children, grandchildren, or great grandchildren) will receive the other 50% of the remainder of the Estate, divided equally between them. If any children are under 18 years of age, their inheritances will be held in a Trust.
If there are no surviving progeny, the partner will inherit all the personal property and belongings of the person who has died, and the whole of the estate with interest from the date of death.
What can you do? How can Redkite help?
The simplest and most effective way to protect your family’s future is to make a valid Will. This way you can stipulate who you wish to inherit your Estate rather than leaving it vulnerable for other individuals to make claims on any basis, moral or otherwise.
If you would like a free confidential chat with one of our experts, please get in contact with us on 01267 239000 or email us at enquiries@redkitelaw.co.uk. We would be more than happy to assist and support you every step of the way.
This article was written by Redkite Solicitors, Adam Burcher. To find out more about Adam Burcher and the support that he can provide to you, visit his website profile here https://www.redkitesolicitors.co.uk/team/adam-burcher/.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.