The government has announced that the statutory spousal legacy in England and Wales will increase from £270,000 to £322,000. This means from 26 July 2023, widows will receive a larger share of their partner's estate if:

• their partner did not make a Will and

• had children.

What is the statutory legacy?

Dying without having made a Will is called dying intestate. The statutory legacy is a maximum fixed sum paid to the surviving spouse or civil partner of someone who died intestate. It provides financial security for those left behind.

If a spouse or civil partner had no children and did not make a Will, their surviving partner is entitled to inherit all their cash and assets.

The statutory legacy does not apply to cohabiting couples who have not formalised their relationship.

Who is affected by the increase in the statutory legacy?

The increase in the statutory spousal legacy is welcome news for many people, especially those with a property valued at more than £270,000. If you die without a Will, the statutory legacy decides who receives a share of your wealth.

Surviving husbands, wives, and civil partners will inherit up to £322,000 of their partner's estate from 26 July 2023. It’s important to realise that the increase in the statutory legacy is no substitute for making a Will.

How do the intestacy rules work?

The intestacy rules state that the statutory legacy and the deceased’s personal belongings are inherited by their spouse or civil partner. Then, anything that remains is shared between the spouse or civil partner and the children. Half of the remainder will go to the spouse or civil partner, and the other half will be shared equally amongst the children. This means that your children may also inherit a share of your estate, even if they are toddlers.

Our blog article: Is Making a Will on Your To-Do List? has more information and a link to an online tool to help you.

What happens if young children inherit under the intestacy rules?

If children inherit from a parent who didn't make a Will, their inheritance is held in trust until they turn 18.

This may cause some problems:

• There’s no guarantee that young adults will have the financial knowledge or understanding to act sensibly at 18.

• If a child inherits a share of the family home at 18, they may want to sell to release their cash.

• If your partner’s child inherits investment assets from their parent, you could face conflict and financial difficulties.

What can I do to avoid the intestacy rules?

Making a Will ensures that your wishes are known, and your estate is distributed as you intend. If you have not made a will, get in touch today. Our fixed fee guarantee means you’ll know the cost from the outset. Like you, we hate nasty surprises too.

Whether you’re cohabiting, married or a civil partner, you should make a Will. It’s the only way to guarantee your partner will inherit all your wealth if you have children. You can specify that your children are to inherit but delay their inheritance until you have both passed away.

We can’t know our own expiry date. Life can sometimes take a tricky turn.

Making a will is essential, even if you have a relatively small estate. Having a legally valid Will also avoids the possibility of your estate being distributed according to the intestacy rules, which may not be what you want.

Next steps

Please get in touch if you would like advice about updating your Will or making a new Will.

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Please note that information provided on the Carisma Wills website:

• Does not provide a complete or authoritative statement of the law;

• Does not constitute legal advice by Carisma Wills;

• Does not form part of any other advice, whether paid or free.