There have been some significant changes to statutory gifts and in this short article, we’re going to explain then, and what they mean to you and your estate planning.
On July 26th, a significant change in statutory legacy gifts took effect, increasing the amount from £270,000 to £322,000. A statutory legacy gift refers to the portion of an individual’s estate that is legally protected and reserved for their close family members, usually their spouse or civil partner, and is effective where an intestacy occurs. This simply means when someone dies without a Will.
The increase from £270,000 to £322,000 means that now, if an individual passes away without leaving a Will, a larger sum of their estate will automatically be granted to their surviving spouse or civil partner. This change aims to provide greater financial protection and security for widowed partners, ensuring they receive a more substantial portion of their deceased loved one’s estate. By raising the statutory legacy gift amount, the government seeks to reflect the changing economic landscape and the increasing costs of living, enabling surviving partners to maintain a higher standard of living and potentially easing financial burdens during a difficult time. This adjustment in statutory legacy gifts is likely to have implications for inheritance distributions and legal considerations in cases of intestacy, offering more significant benefits to surviving spouses or civil partners in the event of their partner’s death without a valid Will.
If this doesn’t reflect your wishes, we advise that you book in an appointment to discuss your estate planning with us. We’ll talk to you about what could stand in the way of your wishes being carried out and explain how a Will could provide greater flexibility as to how your estate can be distributed helping you to remain in control.
This is the new intestacy flowchart reflecting these changes and demonstrating what could happen should you pass away without a Will.
Should you have any questions, please let us know:
