Intestacy changes from 1 October 2014

This is the first time that the intestacy rules have changed since 1925 but broadly, as a result of these changes, a surviving spouse/civil partner will inherit a larger part of the estate than was previously the case.

The Inheritance and Trustees’ Powers Act [2014] amends section 46 of the Administration of Estates Act [1925] and is therefore only relevant in terms of the intestacy provisions for England & Wales. The intestacy provisions for Scotland and Northern Ireland therefore currently remain unchanged.

‘Personal chattels’ will continue to pass to a surviving spouse/civil partner although the new Act amends and expands the statutory definition of personal chattels so that it now includes all tangible moveable property that is not used for business or investment purposes.

There are no changes to the rules for single people on death. This means that, for single people, the order of succession is:

• Children
• Parents
• Brothers and sisters
• Nephews and nieces
• Grandparents
• Uncles and aunts
• Cousins
• The State

There is no division of the estate between the above categories e.g. so if there are children, the estate is shared equally between them, but if there are no children the estate is shared equally between the parents, and so on.

If finding any relatives is difficult, the solicitor may place a notice in newspapers setting a date by which contact should be made, after which the estate would pass to the State.

Summary

It is estimated that almost two-thirds of UK adults have not written a Will and therefore the estate would be distributed in accordance with the rules of intestacy. The changes in the intestacy rules provide more generous provision for a spouse or civil partner but it is still a timely reminder that, even with these changes, unmarried partners would still not inherit any of their deceased partner’s assets.

While these changes somewhat simplify matters when dealing with the estate, they also mean that in many cases other blood relatives will not have a stake in the estate and without a Will this may not be in line with your wishes. The only way to ensure your estate is distributed in line with your wishes is to have an up to date Will in place.