What is the statutory legacy when a person dies intestate?

When a person dies intestate, this means they have died without either having made a Will, the Will is not valid (wholly or partially), or that the Will cannot be found. In these cases, their estate will be distributed pursuant to the rules of intestacy set by parliament. These rules are complex and may lead to the  estate not passing in accordance with the deceased’s wishes, and their preferred beneficiaries missing out.

The statutory legacy is the amount (depending on the value of the estate) which a surviving spouse/civil partner is entitled to receive from the estate when a person dies intestate in priority to other beneficiaries. The surviving spouse/civil partner is entitled to receive the deceased’s personal possessions (chattels) and a sum known as the statutory legacy. This amount was increased to £322,000 from a previous £270,000 and applies to deaths which happened on or after 26 July 2023.

What does this mean?

• When a person’s estate is worth £322,000 or less, the surviving spouse/civil partner will essentially inherit the entirety of the estate.
• When an estate is worth more than £322,000, the first £322,000 passes to the surviving spouse/civil partner. Anything above this amount is divided 50% to the surviving spouse/civil partner and then 50% to the deceased’s children (if any).

Whilst this increase in the value of the statutory legacy was a welcomed increase, it highlights the importance of having a valid Will and the complexities of the rules of intestacy. The rules of intestacy do not allow for flexibility and unfortunately have not moved with the times – due to the increase in house prices this sum could be very low for homeowners, but very high for renters – the law does not differentiate. Unmarried partners and step-children are not provided for under the rules of intestacy and will not be included. Making a Will is the best way to ensure that your desired wishes and intentions are taken into account once you die.

Advice should be sought to ensure that you have in place a legally valid Will addressing your chosen wishes to suit your personal circumstances. For further assistance with preparing or administering a Will or advice on the above, please contact Rebecca Walker, Claire Beard or Jane Letts on 01604 887455.