Review your Circumstances in Light of Recent Inheritance Law Changes

The Inheritance and Trustees Powers Act 2014, which came into effect on 1st October this year, simplifies the laws of intestacy (the rules that determine who inherits from a person who hasn’t made a will).

Under the changes, where a person dies without a will leaving a spouse/civil partner and other family members such as brothers, sisters, cousins etc. but no children, the spouse/civil partner now inherits everything (previously other close family members also had an interest in the estate).

There is also a change to the rules where a person dies without a will leaving a spouse/civil partner and children, which now means that the spouse/civil partner has a larger interest in the estate.  The children receive only one half of the estate remaining after the personal effects and a ‘fixed net sum’ (currently £250,000) is given to the spouse/civil partner.  The children would previously have had an interest in the whole of the estate above the £250,000 legacy. 

The amending Act came into force because there was a need to simplify the laws of intestacy and to keep up with ever changing family arrangements, which saw the previous intestacy rules deal with estates in a way which many families did not intend.

The changes are welcomed as a result, but if you don’t have a will you should review your circumstances and wishes to make sure that the rules will deal with your estate in the way you want.  If they don’t, you should make a will.

The need for review also applies to people who already have a will.  Due to regular changes in the laws of inheritance and tax, you may find that your will no longer deals with your estate in the way you originally intended.  A recent example is the transferrable Nil Rate Band which came in October 2007 and saw people being able to revise their wills to leave more to their spouse/civil partner or charity so that a double nil rate band could be used on the death of the survivor of the couple.  If your will hasn’t been reviewed since before this change, it is highly advisable to get this done to make sure your wishes are still being met. 

You should get your will (if you have one) and your circumstances and wishes reviewed regularly, and when major life events occur (e.g. you move in with someone, get married or divorced, have children or grandchildren, a beneficiary dies, or your estate changes dramatically in value).  It is best to speak with your legal adviser about your situation so that they can advise whether you should change your will, or make a will if you don’t have one. 

It isn’t always necessary to make a will and you should be aware of this when you see your solicitor or legal adviser.  If you are happy with what will happen to your estate if you don’t make a will, then you don’t need to take any action but you should always keep in mind changes in your circumstances, and the law, which may affect your wishes in the future.

For more information about our will-writing and inheritance services please see our Wills & Estates webpage.