The Government has confirmed that on 6th February 2020, the statutory legacy is due to increase to £270,000.
In this article, we will explain what the Statutory Legacy is and why it has increased.
What is the Statutory Legacy?
The statutory legacy is an amount of money received by a civil partner or spouse when the deceased has died intestate (without making a Will) and is survived by a spouse/civil partner and children.
The statutory legacy as per the Inheritance and Trustees’ Powers Act 2014 (ITPA 2014), was increased to ensure that spouses/civil partners received a more favourable treatment on intestacy.
Why was the Statutory Legacy Implemented?
Before the Act was implemented in 2014, if the deceased died leaving a spouse/civil partner and children, the surviving spouse/civil partner received a Statutory Legacy of £250,000 plus the income of half of the deceased’s estate.
Since the ITPA 2014, the spouse received the Statutory Legacy and half of the remaining estate absolutely.
How Often Does the Statutory Legacy Change?
The Statutory Legacy is reviewed every five years by the Government. The amount is decided in line with the Consumer Price Index.
Why Should You Write a Will?
It is essential to be aware that if you do not create a Will, you do not choose how your family members are provided for. It's also essential to be aware of when a will is not valid to avoid any complications for beneficiaries.
This could lead to:
• Unintended taxation as your estate may not be distributed in the most tax efficient way.
• Discontented beneficiaries who challenge the provision they receive.
• Wider family members, who you do not wish to receive funds from your estate, becoming beneficiaries under the rules of intestacy.
Creating a Legally Binding Will
By creating a legally binding Will with the guidance of a solicitor, you decide who should receive your estate and how they should receive it. For more information, please take a look at our article on What Happens If Someone Doesn’t Have a Valid Will?
NSS Legal are experts in estate planning and Will drafting. We can advise you through the process to ensure your wishes are correctly drafted so that your loved ones are taken care of.
Please contact our specialist Will solicitors in Golders Green today for more information on any of the above!