An increase to the Statutory Legacy
An increase to the Statutory Legacy
At the beginning of this month, the Government announced that the amount, known as a ‘statutory legacy,’ passing to a surviving spouse or civil partner when a person dies intestate (died without making a valid Will) shall increase. Currently the sum is £270,000, however from the 26th July 2023 this will be increased to £322,000.
What are the rules of intestacy?
The rules of intestacy provide for a deceased’s estate to be distributed in a particular way depending on the surviving family and the value of the estate.
If the deceased died leaving no children, then everything passes to the surviving spouse or civil partner and the statutory legacy will not apply.
If the deceased had children, the surviving spouse of civil partner will inherit the personal belongings, the statutory legacy and 50% of the remainder. The other 50% passes to the children equally.
If the deceased is unmarried with no children, then the estate shall pass in a hierarchy of family members.
The importance of a Will
Whilst this increase is in line with the Consumer Price Index and is welcomed, it does not replace the need for a valid Will. Whilst the intestacy rules provide for family members, it may not be the way you intend. Furthermore, there is no provision for friends or charities.
If you would like to discuss preparing a Will or reviewing an existing one then please contact our Private Client team on 024 76 231000 or enquiries@askewslegal.co
