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Dying without a will

Far too many people do not make a will and do not realise that without a will their assets are left in accordance with a formula determined by the state. From 1st February, spouses and civil partners (where there are children and who die without a will) now inherit the first £250,000, not the first £125,000 as now. For many people whose assets are under those levels the result is that the spouse receives all the money from the estate.

Philip Armstrong a partner at Atteys says:-

“Where there are parents or siblings, but no children, the first £450,000 now goes to them, not £200,000 as before. If the estate is worth more than the statutory legacy, the remainder is divided between the spouse and children or, if no children, between the spouse and parents or siblings. If the deceased leaves children, half of the remainder is paid directly to the children and the spouse will take a life interest in the other half. So the spouse receives any income generated by the half in which he or she enjoys an interest for life. When the spouse dies, the capital sum passes to the children. If there is a spouse but no surviving children, half of the remainder is paid directly to the closest relatives, and the spouse takes an absolute interest in the other half. The change reflects increasing inflation since the figures were last set in 1993. However, people are far better off making a will so that these rather arcane rules are not imposed on their families after they die”.

For more information relating to these probate changes contact Philip Armstrong on 01777 713366.

Notes
1. The changes were made by the Family Provision (Intestate Succession) Order 2009 under s1 of the Family Provision Act 1966 see at http://www.opsi.gov.uk/si/si2009/uksi_20090135_en_1

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