When dealing with a loved one’s estate during a stressful time, attempting probate on your own can be risky. Isabelle Gulliver, a Paralegal in WSP Solicitors’ Private Client Department specializing...
Statutory Legacy is Increasing on the 26th of July 2023
When someone dies without a Will (known as Intestate), their estate is distributed in accordance with certain rules of entitlement, depending on who survives them.
What is Statutory Legacy?
Currently, if a person dies leaving a spouse or civil partner and children, the spouse/civil partner is entitled to the deceased’s personal belongings as well as the first £270,000 of the deceased’s estate. This sum is known as the Statutory Legacy. Anything over the value of the Statutory Legacy is then divided 50% to the surviving spouse and 50% to the deceased’s children.
From 26 July 2023, the Statutory Legacy is increasing to £322,000. The review of the Statutory Legacy was prompted by the inflation rate increasing by more than 15% since it was last set in January 2020.
Some may argue that £322,000 is not enough to provide security for their surviving spouse or civil partner, particularly as according to a Rightmove survey, the average house price in Gloucestershire is £385,780. If the deceased owned the family home in their sole name, this could lead to the surviving spouse/civil partner having to sell the property to realise sums due to their children or naming their children on the deeds which will restrict the surviving spouse’s/ civil partner’s freedom to sell, or release funds from their property.
It also means that for estates over the Statutory Legacy value, Inheritance Tax may be due on the death of the first spouse or civil partner which could result in an unnecessary administrative burden for loved ones during a time of grief, which could have been avoided if they had a Will.
Statistics show that over 60% of people in the UK do not have a Will. To avoid complications for your loved ones in the future and avoid unnecessary administration and Inheritance tax burdens on your death, it is worth meeting with a professional to gain advice on making your Will.
For more information on the services WSP Solicitors offer from Wills, Trusts, Power of Attorney, and Probate you can visit our service pages here. If you would like to get in touch you can do so here or by calling 01453 847200. Alternatively, you can use the contact form on this page.