Changes to intestate pay-outs still no compensation for a Will

Published: 3rd February 2009

A leading law firm says new rules coming into force this month covering pay-outs to family from people who die without a Will, are still no replacement for a properly drafted Will.

Mace & Jones made its remarks after new rules came into force from February 1 covering people who die 'intestate' or without a will. The new rules state that where someone dies leaving a spouse, or civil partner, and children the spouse will now receive the first £250,000 of the estate. This is an increase from £125,000 under the previous rules together with a life interest in half the remainder. The other half of the remainder passes to the children at 18-years-old. If there are no children the surviving spouse will receive £450,000, up from £200,000, and half of the remaining estate absolutely.

However, Mace & Jones private client associate Paul Bricknell warned families not be lulled into a false sense of security by the increases.

"The increased limits do not mean that a Will is now unnecessary," he said. "There are so many reasons to try and avoid the intestacy rules. For example, they provide that children inherit cash aged 18. Many people feel that this is far too young to inherit what can be a significant sum of money. A Will can specify what age a child should inherit, for example aged 21 or even 25 hopefully an age when the child is mature enough to handle the money."

Mr Bricknell said another problem with intestacy is that is makes no provision for unmarried couples regardless of how long they have lived together.

"Failing to make provision for a partner will almost certainly lead to unnecessary legal costs in trying to rearrange an estate after death," he warned.

Mr Bricknell added it is vital that family and friends know where Wills are, as so many are left unclaimed every year. A recent survey showed that more than two thirds of children did not know where their parents' Wills were located.

"Many people's estates are administered as if they are intestate even if they have a Will simply because no one knows where the Will is kept," he said. "Mace & Jones is a founder member of Certainty, the national Wills database. This enables families to find the Will even where they a have no idea as to where it is kept."