New Intestacy Rules
The Inheritance and Trustees Powers Act 2014 (ITPA2014) has changed the way in which the assets of people who die without Wills are shared between relatives
From Wednesday 1st October 2014 spouses and civil partners had new rights under the Intestacy Rules.
The Rules provide as follows:-
There are no changes if assets are less than £250,000…
There are no changes for co-habitees who still do not inherit anything
Married Couples and Civil Partnership without Children:-
i) The surviving spouse will receive the entire estate
Married Couples and Civil Partners with Children:-
i) The surviving spouse will receive all chattels together with £250,000 and 50% of the remainder.
ii) All children will receive 50% of anything above £250,000 equally between them.
No Surviving Spouse of Civil Partner:-
The members of family will be considered in the following order:-
1. Children or their descendants
2. Parents
3. Brother or Sisters or their descendants
4. Half siblings or their descendants
5. Grandparents
6. Uncles and/or Aunts or their descendants
7. Half Uncles and/or Aunts or their descendants
8. The whole estate passes to the Crown
The new rules also protect adopted children.
The new rules also changed the definition of “chattels”. These are now defined as anything that is not monetary, business assets or “held as an investment”.
It is extremely important that Wills are considered and updated. However you should consider making a New Will on the following events:-
1. Changes within the family when a new baby is born and when children reach
a significant age such as 18, 21 or 25.
2. Marriage automatically revokes a previous Will. You should make a New Will after marriage
3. A civil partnership will also have the same effect. Therefore you should make a New Will
4. A divorce does not revoke a previous Will. However the beneficiary spouse will cease to be a beneficiary. They will not be allowed to be Executors.Therefore you should make a New Will.
5. Dissolution of a civil partnership, as after divorce you should prepare a New Will.
6. Separation does not have the same effect as divorce. However you should make a New Will
7. Changes in your financial circumstances. You should make a Will if you acquire assets or suffer a loss.
8. Changes in Taxation:
You should make a New Will if changes in taxation are likely to impact on your estate.
9. Going to Live Abroad:
You should make a New Will to take your new domicile and changes into consideration.
10. You should consult a solicitor at least every few years to make sure your Will is up to date.
Please consult our:-
Belinda Fox: Tel. 01943 601173 Email belinda@rdcsolicitors.co.uk
Sheila Mackintosh: Tel. 01274 735511 Email sheila@rdcsolicitors.co.uk
Judith Fitzpatrick: Tel. 01274 723858 Email judith@rdcsolicitors.co.uk
