Making a will enables you to stipulate how your assets, property, and personal belongings should be distributed amongst your loved ones and beneficiaries. A will is the best way to ensure that your wishes are fully respected and carried out after your passing. Without a will, your estate could be subject to intestacy laws, potentially leading to a distribution that may not align with your desires, causing unnecessary stress and conflict between surviving family members.
A thoughtfully crafted will allows you to appoint guardians for any minor children, select appropriate executors to handle the estate, and possibly minimise the tax burden on your beneficiaries. It is a responsible and considerate act that provides peace of mind, safeguarding your legacy and the financial well-being of those you care about most.
In estate law and inheritance upon an intestacy (where someone dies without a will) the statutory legacy figure plays a vital role in ensuring that your surviving spouse or civil partner is adequately provided for upon your death.
What is the Statutory Legacy Figure?
The statutory legacy figure, also referred to as the intestacy legacy or the statutory inheritance amount, is the legal minimum amount of the estate that is guaranteed to pass to your surviving spouse or civil partner, in the event that you die without leaving a valid will (intestate).
On the 5th of July the government passed The Administration of Estates Act 1925 (Fixed Net Sum) Order 2023 increasing the current statutory legacy in cases of intestacy from £270,000 to £322,000. So starting from 26th July 2023, this amount will increase to £322,000, in line with inflation.
The primary purpose of this statutory legacy figure is to provide your spouse with financial security upon your death, without a will. It recognises contributions to your marriage or civil partnership and seeks to prevent undue hardship or financial strain during an already difficult time.
What is the purpose of the Statutory Legacy Figure and what is its significance for my family?
Without a statutory legacy figure in place, intestacy laws would distribute your estate according to a predefined legal hierarchy, often leaving the surviving spouse with an uncertain share or, in some cases, without many inheritance rights. This figure ensures a reasonable portion of your estate is reserved for them, irrespective of whether you have a will in place.
It is important to note that the statutory legacy figure represents the minimum amount that the surviving spouse or civil partner is entitled to receive. If the deceased person’s estate exceeds this amount, the remaining assets will be distributed according to the laws of intestacy or any valid will left behind.
What do you need to do or consider:
As laws and regulations are continually evolving, it is essential to consult with a legal professional and stay up-to-date with the latest changes to ensure that you and your loved ones are protected.
The first step towards securing your family’s future upon your death, would be to plan your estate through a will or trust, ensuring that all of your assets are distributed as you intend. If you have an existing will or trust, we are happy to review this on your behalf, ensuring your spouse or partner are financially cared for, and the remainder of your estate is distributed to your exact wishes rather than leaving an arbitrary sum and a division of assets to be determined by legislation.
To discuss setting up or reviewing your will with our Private Client team, contact John-Paul Dennis at JPD@prosperitylaw.com or call us to arrange an appointment on 0151 909 8657
