On 14th January 2020, the Lord Chancellor made and presented a Statutory Instrument which takes effect for people who die on or after 6th February 2020 without leaving a Will. The statutory legacy is being increased from £250,000 to £270,000 in line with inflation (see more here).
This means that spouses and Civil Partners whose partners die, leaving children, without a Will now receive the first £270,000 of the deceased’s estate. This increase is of course welcome but does not replace the need of having a Will. The rules of Intestacy are outdated and often produce undesirable results. If you die without a Will you don’t get to have control over:
- Reducing or delaying the payment of inheritance tax
- Retaining control of who administers and benefits from your estate
- Stating your funeral wishes
- Ensuring that your children from a previous marriage or relationship are adequately provided for
Even with this increase it can still leave your spouse or Civil Partner in financial trouble and needing to sell your property after you die.
Making a Will is the foundation to ensuring that your loved ones and family are protected and life after you are gone is more manageable. If you are considering making a Will or need to update your existing Will, please contact me at [email protected] or another member of the Wills, Trusts & Probate team on 01473 211121.