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New Intestacy Rules
The government has announced that from 1st February 2009, new levels of statutory legacy will increase where someone dies without having made a Will.
Currently, when someone dies leaving a spouse and children, the surviving spouse becomes the absolute owner of the deceased's personal chattels and £125,000. One-half of the remaining assets has to go into trust for the surviving spouse, but the other half is left to the children equally. On the death of the surviving spouse, that spouse's half of the residuary estate goes to the children equally. With effect from 1st February, the £125,000 will double to £250,000.
If the deceased leaves a spouse and they have no children, only brothers and sisters, then the surviving spouse receives the personal chattels plus £200,000 and half the remaining assets. The deceased brothers and sisters take the other half of the remaining assets immediately, and then inherit the surviving spouse's half of the residuary estate on that spouse's death. From 1st February the £200,000 will increase to £450,000
Married Couples or Civil Partners WITHOUT CHILDREN Beware!
These new rules mean that even more families will be disinherited in the future.
On the first death an estate up to £450,000 is left totally to the surviving spouse (civil partner) plus any personal chattels. When the surviving spouse (civil partner) dies the estate will pass only to their family (parents, brothers and sisters, nephews and nieces) if the estate of the first to die did not exceed £450,000 this leaves the family of the first deceased with nothing.
Our message to people is, "don't leave it to chance. Make sure your loved ones are properly provided for by leaving a Will."
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