New Intestacy Distribution Rules are now in force.
The new statutory limits for Intestacy are:

As of 1 February 2009 there are a new set of figures for distribution of a deceased person’s estate following intestacy.

£250,000 (from £125,000) where there is a surviving spouse or civil partner and children.

£450,000 (from £200,000) where there is a surviving spouse or civil partner and parents or siblings, but no children.

In each case, for estates with a valuation lower than the statutory limit, the spouse or civil partner will inherit the entire estate.

Application of the statutory limits

When the estate exceeds the minimum (i.e. the statutory limits) the rules apply as follows:

For a spouse or civil partner, and children:

The spouse or partner gets the personal chattels, the first £250,000 and a life interest in half of what is left.

The children of the deceased, share between them half what is left straight away, if they are 18 or over; and the other half when the surviving parent dies.

For a spouse or civil partner, and relatives but no children:

The spouse or partner gets the personal chattels, the first £450,000 and half what is left.

The parents of the deceased, or if they have died, the siblings or their descendants, share the other half of what is left.

If there is a spouse or civil partner, but no other relatives:

The surviving spouse or partner gets everything.

If there are children, but no living spouse or civil partner:

The children share everything equally.

If there is no spouse, civil partner or children:

Everything goes to the next available group of relatives.

Finally, if there are no available relatives the estate in its entirety goes to the State.

The Justice Minister, Bridget Prentice, commented that many people wrongly assume that when their partner dies, they will automatically be entitled to everything. Clearly this is not the case and the importance of making a will cannot be over-emphasised. In other words Intestacy can be a problem!

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