Friday, October 10th, 2008
The Government is to raise the amount of money a husband or wife can automatically inherit if their partner dies without making a will.
However, it could still leave the surviving spouse at risk.
Many people believe that when a person dies, all their estate will be passed on to their surviving spouse. This is not the case. The estate is in fact divided between surviving relatives in a manner laid down by the law.
At present, if the deceased person has children then the surviving spouse receives £125,000 from the estate, assuming it contains that level of assets. If there are no children then that figure is increased to £200,000.
The rest of the estate would be shared out between the children or other relatives if there are no children. These thresholds - known as the statutory legacy for people dying intestate, that is, without having made a will - have been in force since 1993.
Now they are to be increased to £250,000 when a deceased person leaves children and £450,000 when there are no children. The increase is well below house inflation over the same period and also below the figures recommended by the Department for Constitutional Affairs in 2005. It suggested £350,000 and £650,000 respectively.
The level of the threshold is very important because most people’s main asset is their house. If the value of the house is above the threshold, the surviving spouse may have to sell up so the deceased’s children can receive their share of the inheritance. There have been examples where this has happened.
Announcing the increases, the Justice Minister Bridget Prentice, said: “This increase will give extra protection to married couples and civil partners whose spouse or civil partner dies without making a will. But it also highlights how important it is for both men and women to make arrangements for their loved ones in the event of their deaths.
“Married couples and civil partners should not assume that when their spouse or civil partner dies, they will automatically be entitled to everything. It is up to individuals to make sure that their wishes are respected by making a will.
“My message to people is, don’t leave it to chance. Make sure your loved ones are properly provided for by leaving a will.”
The new statutory legacy figures come into effect on 1st February 2009.
It is perhaps unfortunate that the Government did not raise the threshold further but the advice to make a will is well founded and should be followed by anyone who wants to ensure that their estate is divided according to their wishes.
Failing to make a will can lead to considerable hardship and heartache for your spouse and family. Please contact Maria Turner if you would like more information about wills and probate.
© Copyright 2008 Burt Brill and Cardens Solicitors