New Statutory Legacy doesn’t devalue Wills

The idea that we may have to one day survive the death of a spouse can be a very distressing notion to come to terms with. After a period of grief for such a tremendous loss, a surviving wife, husband or partner must begin to rebuild his or her life on their own.

If the death is unforeseen or the result of an accident, the shock also contributes to this time of pain and loneliness and if the deceased has died ‘intestate’, (without having made a Will) further distress is often caused by the confusion and uncertainty of the survivor’s future financial security.

Last week, the Ministry of Justice announced its plans to increase levels of ‘Statutory Legacy’ so that spouses and civil partners receive more money if their loved ones die without leaving a Will.

Since they have not been changed since 1993, the Government has acted after concerns that the levels of the statutory legacy, currently set at £125,000 (where the deceased leaves a surviving spouse or civil partner and children,) and £200,000 (where the deceased leaves a surviving spouse or civil partner and parents or siblings, but no children,) were seen by many as far too low.

Under the new proposals, from the 1 st February 2009 the new levels of the statutory legacy will increase to £250,000 and £450,000 respectively.

Since the economic climate has changed a great deal over the last fifteen years, it is only right that laws and regulations concerned with wealth and inheritance keep in line with financial developments, but some might interpret the words of Justice Minister Bridget Prentice as giving a rather mixed message:

‘This increase will give extra protection to married couples and civil partners whose spouse or civil partner dies without making a Will. But it also highlights how important it is for both men and women to make arrangements for their loved ones in the event of their deaths’

So the Government clearly does not want this increased allowance to diminish the importance of making a Will, which makes you wonder, had things been left the way they were, if there would not have been more incentive for people to make the legal provision of a Will?

‘Married couples and civil partners should not assume that when their spouse or civil partner dies, they will automatically be entitled to everything,’ the Justice Minister continues. ‘It is up to individuals to make sure that their wishes are respected by making a Will.’

What the Justice Minister correctly reminds people of is that the intestacy rules are a default regime and most people can opt out of them by making a Will. Her message to people, which I wholeheartedly agree with, is for people not to leave such important and potentially life-changing decisions to chance, but to make sure that loved ones are properly provided for by leaving a Will.