Statutory Legacy – How Does Annual Increase Affect You?

If you don’t have a Will, would you know what happens to your estate after you die?

It’s a question few would know the answer to or have definitive knowledge on the subject. Discussions around what happens after you die are often put on the back burner, put off for another day, and delayed because day-to-day life gets busy and other matters take priority.

But dealing with tomorrow today, gives you reassurance the future is taken care of and is something you no longer need to worry about.

Government legislation has changed this year to raise the Statutory Legacy amount. How will that affect you? One of the specialist team at Winn Solicitors, Josef Lythe, answered questions on the topic:

What is Statutory Legacy?

When discussing what Statutory Legacy is, Josef says: “The Statutory Legacy is the amount a spouse or civil partner is entitled to receive after someone dies intestate (without a Will) and leaves behind a surviving spouse and children.”

What has changed?

“Originally this amount was £270,000 (for example, the surviving spouse would be entitled to £270,000 from the estate, and the remaining amount is shared between the spouse and children),” continued Josef.

“Half the amount over £270,000 would go to the spouse, with the other half being shared equally amongst the children.

“The Administration of Estates Act 1925 (Fixed Net Sum) Order 2023 increased the Statutory Legacy amount to £322,000, meaning a surviving spouse inherits the first £322,000.”

How might this affect you?

“This is a significant change and means surviving spouses are entitled to a large portion of the estate when someone dies intestate,” continued the solicitor.

“This could be an issue should the deceased want their children to receive a larger share of the estate. The effect is more significant with smaller estates, and spouses could end up inheriting everything if the estate is worth less than £322,000.

“Whilst the intentions of the intestacy rules, and Statutory Legacy amount, is so that your family are provided for, your wishes may not align with these rules and therefore it is important you prepare a Will.

“The increased Statutory Legacy makes it more likely that your children will not inherit anything if you are married / in a civil partnership and die without a Will.”

Why call Winns?

By calling the dedicated Wills, Probate and Trust team at Winn Solicitors, you can take the first step in ensuring your wishes are acted upon after you’re gone.

Don’t leave your estate to chance, and in the hands of Statutory Legacy.

Make sure your financial affairs are in order by getting a Will in place. Our team has extensive experience in handling matters in relation to this and can guide you through the legal processes involved.

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