Although there is generally an increasing entitlement for surviving spouses and civil partners, the changes to the intestacy rules are not as far reaching as originally proposed, and highlight the importance of making a Will.
As you may know, when an individual dies without leaving a valid Will, he is said to have died ‘intestate’. Rules known as the intestacy rules then apply, for example, because an invalid Will was made, the Will was revoked, the individual married or entered into a civil partnership after making a Will or the deceased simply didn’t get around to making a Will.
New reforms to the intestacy rules were introduced on 1 October 2014. A few points to note:
– Previously, with married couples and civil partnerships where there were no children, the survivor received the first £450,000 from the estate and the deceased’s other relatives could benefit. Now, the whole estate passes to the surviving spouse/ civil partner meaning wider family members do not receive anything.
– The sharing of assets on intestacy have been simplified where the deceased is survived by a spouse and children. Previously, the surviving spouse received the first £250,000 and a ‘life interest’ (access to income) in half of the remainder with the children having the other half. Now, the life interest has been abolished and the surviving spouse takes the personal possessions and receives the first £250,000 and half of any balance of the estate outright. The surviving children or other descendants take the remaining half share on trust until they are 18 when they receive it outright.
– The new provisions provide no protection for couples who have not married or have not entered into a civil partnership, thus the cohabitant of an intestate has no entitlement.
– Step- children still have no automatic right to inherit under the new reforms.
– The usual hazards of separating from your spouse means that making/ amending your Will is just as essential now as it was before these new rules came in.
– Further, the general principle is that the estate is shared by the relatives in the highest category, to the exclusion of relatives in lower categories.
What is clear is that without a Will, the situation is far more complicated and it may cost significantly more to resolve disputes and the effect of the rules is that beneficiaries inherit part or all of the estate who would otherwise have not benefited had a Will been made. The intestacy rules don’t necessarily mean that the people you would like to benefit from your estate will do. You could have lived with someone for 20 years, yet without being married or in a civil partnership, this person may not benefit. Children automatically inheriting assets at the age of 18 is often not preferred as they may not be mature enough to sensibly manage their inheritance.
If you still need to prepare your Will, or wish to review your existing Will, to ensure your wishes are followed when you pass away, please let us know.
Despite the 21st century being more than a decade old lawyers have lagged well behind the market when it comes to making life easier for their clients.
Delivering products and services online and over the phone is the norm for many businesses, in fact everything from groceries to holidays, from tax returns to insurance are bought or completed online as a preference.
Lawyers have made it difficult enough with hourly rates, rigid opening hours, inordinately long time scales to complete matters and now most fail to embrace the very fabric of what makes most people tick when deciding to interact with a business – technology!
It’s not the total story of course because using online processes to take instructions, payment, provide useful educational material is only as good as the expertise used to develop the IT. Automation is inevitable and reduces the cost of essential family and business legal services but there still needs to be a way out of the IT process if circumstances require ‘human input’! We’ve all been there, wanting the comfort of speaking to someone and the phone number isn’t even published.
Clever digitally produced documents that collect information from the user’s own input exists now and certainly at legalmatters we make good use of that. However, we have not lost sight of the need for a personal touch. We speak to people, reassure about the right thing to do and make sure that if the computers wobble we’re there to maintain high standards of quality.
So we’re lawyers and we interact with people but technology enables us to do that quickly, efficiently and cost effectively. It’s not rocket science.