What is intestacy? An increase to the statutory legacy.

22 AUGUST 2023 09:15

If someone passes away without leaving a valid Will, they are said to have died intestate and their estate, including properties and money, will be passed on according to the rules of intestacy.

These rules determine who inherits the deceased’s estate based purely on family relations. There is no consideration for how close the deceased person was with certain family members or the needs of individual family members.

The list of priority in these matters is as follows:

• A spouse or civil partner.
• Children, or grandchildren if the children are deceased.
• Whole blood siblings (who share both a mother and father), or their children if the sibling is deceased.
• Half blood siblings (who share either a mother or father) or their children if the sibling is deceased.
• Whole blood aunts or uncles, or their children if deceased.
• Half blood aunts or uncles, or their children if deceased.
• If the deceased has none of the above listed relatives, then the estate will go to the Crown.

If the person who died was married or in a civil partnership and did not have children, their spouse or civil partner will inherit the full estate.

In England and Wales The Administration of Estates Act 1925 (Fixed Net Sum) Order 2023, which came into effect on 26th July 2023, increased the statutory legacy left to a spouse or civil partner from £270,000 to £322,000. If the deceased’s estate is worth more than £322,000 then the remaining sums will be divided between the spouse or civil partner, who would receive 50%, and the remaining 50% being divided between the children.

Under the rules of intestacy there are no provisions for unmarried or cohabiting partners to automatically inherit their partner’s estate. The best way to ensure that your estate is distributed according to your wishes is to make sure you have a valid Will in place. Please contact us should you wish to discuss this topic further.

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