Intestacy - Changes

What happens when you die without a will?

The current law of intestacy was established in 1925 and sets out which of your relatives will receive how much of your estate and what will happen if there are none. The last time the rates for the statutory legacies were set was in 1993. The basic rule is that the spouse or civil partner will receive the first £125,000 of the estate if there are children and the first £200,000 if there are none. After that, there are complex rules about what happens to any amounts in excess of the statutory legacies (which include the house). The 1993 rates for the statutory legacy were just about reasonable at the time they were set but inflation has made them progressively more unrealistic.

In August 2005, the Government carried out a consultation exercise on whether there should be any changes. Three years on it disclosed the results of the consultation and announced the action it intends to take, in a press release issued on 27 August 2008, just after the bank holiday. There are two big changes. From 1 February 2009, the statutory legacies will increase to £250,000 and £450,000 respectively.

Furthermore, the Law Commission is going to review the present intestacy rules, including aspects of the Inheritance (Provision for Family and Dependants) Act 1975, under which dependants of a person who dies without making appropriate provision for them in his or her will can apply to the court for provision to be made. However, the review is unlikely to be completed before 2011.

Making a will is straightforward and is recommended for everyone – even those with relatively small estates – so that loved ones are provided for according to your wishes. We can guide you through the process to give you the peace of mind which comes from knowing that all your affairs are in order and your family’s interests are protected.