Change to Intestacy Rules but nothing for the "common law" partner.

The Intestacy Rules govern how a person’s estate is distributed if they die without a Will (intestate). From 26th July 2023 the Intestacy Rules are changing. The “Statutory Legacy”, which is payable from an estate to a surviving spouse/civil partner if there are also children of the deceased, rises from £270,000 to £322,000. This takes the first “bite of an estate”, with the rest being split 50/50 between the survivor and the children.

If you are married/in a civil partnership and there are no children, if you die intestate (without a will) then your estate will pass in full to the survivor, but this is not the case if there are children. 

Relying on the intestacy rules could leave a surviving spouse/civil partner struggling financially. Equally, a “common law” partner has no entitlement under these rules (it is a common misconception that they do).

If you die intestate leaving no surviving spouse/civil partner or children then these rules dictate how your estate is divided up. This could mean it goes to distant family you have never heard of, or don’t like! 

The divisions can be quite complex and incur significant legal costs.

In all cases property and other assets co-owned by the deceased with someone else as “joint tenants” will automatically pass to the surviving co-owner(s) outright and is not included in the estate for the purposes of the intestacy rules. 

To avoid the pitfalls and uncertainty of intestacy you need to make a Will. This not only ensures that your assets pass to those you want them to but will also ensure that the maximum tax planning benefits can be obtained. You can also secure assets for future generations, or in the event of your partner entering a new relationship after your death. Increasingly, people’s personal and financial lives are becoming more and more complex and there is no substitute for seeking professional advice to ensure those you care for are protected when you die.

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of advice.