The Government has announced a £20,000 increase in the statutory legacy figure – the amount of an estate that will automatically be passed to a surviving spouse or civil partner where there is no valid Will in place and where the deceased had children. The change will apply from 6 February 2020.
When a person dies without a Will, the laws of intestacy apply, providing a rigid formula for the distribution of money, assets and possessions.
As the rules currently stand, the first £250,000 of an estate and half of anything remaining, as well as the deceased’s possessions, is passed automatically to a surviving spouse or civil partner where the deceased has children. The remaining amount is passed to the children or legally adopted children.
This figure will increase to £270,000 next month. This means that while previously, the children of someone who died without a Will and had an estate worth £270,000 would have received £10,000, from 6 February 2020 they would receive nothing.
Simon Davies, the President of the Law Society, said: “This increase is very welcomed, but many people are unaware that under intestacy laws, unmarried partners and close friends cannot inherit.
“Writing a legally valid Will with the help of an expert solicitor ensure people’s estate is inherited exactly as they would choose and can prevent a whole raft of problems landing on loved ones when they are grieving.”
The Government is required to change the amount every five years.