On 5 July 2023, the UK government confirmed that the statutory legacy, the amount which a surviving spouse or civil partner (for simplicity here we will refer to both as ‘Spouse’) is entitled to receive in England and Wales where a person dies intestate (without a valid Will) and leaves children, will be increased.
Currently, the sum is £270,000 but this will increase to £322,000 when the new provision comes into force on 26 July 2023.
What is the statutory legacy?
Under the rules of intestacy, the estate of the deceased is distributed in a particular way depending on who survives, how they are related to the deceased and how many individuals there are.
The rules are complicated but in general there is an established order of priority for who inherits: Spouse, children, parents, siblings, grandparents, aunts/uncles. The rules tend not to take into account modern relationships and make no provisions for cohabitees, step-children, or close friends.
In cases where there is a surviving Spouse and any other direct descendants, the rules set out that the gift of personal possessions to the Spouse and the Spouse statutory legacy are the top priority legacies i.e. they are paid first whatever the value of the estate.
Should I rely on the rules of intestacy for my estate?
The previous increase to the statutory legacy to bring it to the current sum of £270,000 came into force on 6 February 2020. Whilst the increase in the fixed statutory legacy is certainly welcome, this should not stop you from making a Will and/or reviewing your current Will regularly.
Whilst the intestacy provisions do provide for family, this might not be in the way you intend. Avoidable inheritance tax could also arise. Furthermore, there is no provision for friends or charities. Finally, the indiscriminate nature of these rules mean any moral or financial claims, which could be accommodated or at least addressed in a Will, are not taken into account, thus leaving the estate more vulnerable to costly challenge from any individuals holding such claims.
The best way to be certain about how your estate is distributed to your loved ones and causes when you die is by making a Will and choosing who you want to benefit and how.
Further Information
If you have any questions or concerns about the topics raised in this blog, please contact Tom Surr, Joseph Austin, or any member of the Private Client team.
About the Authors
Joseph Austin is a Senior Associate and Head of Probate in the Private Client Team. He specialises in the administration of deceased persons’ estates (probate), with a particular focus on complex and international estates.
Tom Surr is a trainee solicitor at Kingsley Napley and is currently in his second seat with the Private Client department.
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