As part of providing our clients with a regular financial bulletin, we intend to publish here a summary of some of those bulletins – and should you like what you read – please contact us for a full copy of that bulletin!

Our first bulletin is on the slightly morbid subject of Death and Intestacy!

Currently going through government is their consultation on reforms to intestacy laws.

What happens if you die leaving only your spouse/civil partner and no will?

You might imagine that everything goes to the survivor, but currently that is not always the case. Under the current intestacy rules for England and Wales, a surviving spouse/civil partner, where there are no children involved would receive:
• Personal chattels;
 
• £450,000 outright; and

• One of half the residue outright.

The other half of the residue would go to your parent(s), failing whom your siblings or, if they have predeceased you, their offspring. The rules in Northern Ireland are very similar, while Scotland has its own distinctly Scottish regime.

This might create some significant issues for example, where property is involved.

If there are children involved the surviving spouse would receive:
• Personal chattels;
 
• £250,000 outright; and

• A life interest in one of half the residue

The other half of the residue would go to your children, in trust until they reach the age of 18 (or age at which they marry, if earlier!). The rules in Northern Ireland are very similar, while Scotland has its own Scottish regime.

Like the above comment, if the family home has a significant value to it (the deceased’s share was worth more than say £250,000) – the surviving spouse may have a choice of keeping the family home or a capital value.

The Ministry of Justice is now proposing to reform English and Welsh intestacy rules, so that where there are no children, the surviving spouse will inherit the whole estate. There are also revisions planned for the estate distribution when there are children involved.

So the question is – do you have a Will and is it up to date?

Should you want to discuss this with us or have a general review, please call us on 0118 9076505 or kindly complete the ‘Contact Us’ form.

Please note the above information is for general guidance and should not be taken as personal advice.