Changes to the way an estate is distributed if there is no Will
The Inheritance and Trustees Powers Act 2014, which came into effect on the 1st October 2014, is introducing changes to the rules determining how your assets should be divided if you should die without making a Will.
For example, under the new rules, if you die but are survived by your spouse or civil partner and you have children, then by law your spouse or civil partner will receive (in addition to all assets held in your names as joint tenants) all of your personal belongings, and a sum (called the Statutory Legacy) outright. The Statutory Legacy is currently set at £250,000, and will increase in line with the Consumer Prices Index. If your assets exceed the Statutory Legacy amount, the balance of funds is divided into two equal shares. Your spouse or civil partner is entitled to one half, and your children share the other half equally between them.
If you have a spouse or civil partner but no children, then they receive your entire estate. However, if you are not legally married or in a civil partnership, then your partner has no legal right to any of your assets (although they may be able to make a claim against your estate).
If you have no spouse or civil partner or children, then the law determines who inherits your assets. This is your parents if they survive, if not your brothers and sisters (and if one of them dies before you, their shares passes to their own children instead), if you have none then your grandparents would be entitled to inherit, if they have predeceased then uncles and aunts and their children. These are all your own blood relatives, and not relatives by marriage, so if your spouse or civil partner has died before you, your combined estates will all end up on your side of the family. This may well not be the distribution you would both have chosen.
If you make a Will, you can choose who receives your assets, and you can also choose the identity of the executors who will be responsible for dealing with the administration of your estate. You can also include specific legacies to people and/or worthy causes you would like to benefit.
To ensure your own wishes are carried out, do not delay, and make a Will!
If you require assistance with these matters, or wish to make a Will, please ask to speak to Sara Frost, Pamela Air, Alison Bragg or Laura Murphy.
