Call 0151 933 3333
Opening Hours: Monday to Wednesday - 9am to 5.30pm
Thursday - 9am to 7.30pm
Friday - 9am to 5pm
Saturday Morning - 9am to noon”

Changes to the Intestacy Rules

The Inheritance and Trustees’ Powers Act 2014 was came into force on 1st October 2014 and introduced various changes to the intestacy rules.

The intestacy rules govern how your estate is distributed between your relatives if you die without making a Will.

The table below shows some of the main ways in which the new legislation has changed these provisions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As can be seen the main changes when the deceased has surviving children are with regard to the distribution of the residue of the estate once the initial statutory legacy of £250,000 has been received by the surviving spouse.

Under the old rules this left over amount would be split with half going to any children of the deceased straightaway with the surviving spouse having a life interest in the other half with the creation of a trust, before this too would eventually go to the same children once the surviving spouse had also died.

This has been simplified so that half of the residue now goes directly to the surviving spouse. This will potentially have a detrimental effect on children of earlier marriages as they will now generally receive a smaller inheritance unless provision is made for them by the surviving spouse. This is because they will no longer also receive the proceeds of the trust created for the surviving spouse under the old system.

The only way to avoid such a situation occurring would be through the creation of a Will so that your estate is distributed in accordance with your wishes.

We can create single Wills (£99+VAT) and Mirror Wills (£149+VAT) and these can often be finalised in as little as 1-2 weeks from your initial appointment.

To book an appointment please ring our Wills and Probate department on 0151 933 3333.

Leave a Reply