What happens to your home if you die without a Will?
Posted: Tuesday 7 February 2012
The rules on intestate succession (where someone dies without leaving a Will) have now been changed to better reflect the rise in property values.
Under previous rules, in cases where a person died without a Will their surviving spouse (or civil partner) would only be automatically entitled to the house if the deceased's share was worth under £300,000. This threshold, for deaths on or after 1 February 2012, has been increased to £437,000. Additionally, the surviving spouse/civil partner will be entitled to the deceased’s furniture and personal effects up to £29,000 (previously £24,000). The monetary rights thresholds have also risen and so the surviving spouse/civil partner will be entitled to up to £50,000 (if there are surviving children) or £89,000 (if the deceased left no children) from the estate.
Sue Hunter of Morton Fraser comments: “This is undoubtedly good news, but we would still stress the importance of making a Will and avoiding an intestate situation in the first place.
One-third of people do not have a Will, and this can leave their families facing a particularly traumatic situation when they die. By making a Will, you are ensuring that all of your estate passes to the people you want it to go to, as well as making sure the administration process is quicker, more cost-efficient, and more certain for your surviving family.”
This is of particular importance when remarriage, cohabitation or children are involved as there are many myths surrounding entitlements upon death.
Morton Fraser has a team who specialise in Wills and can advise you of the legal implications surrounding your specific circumstances. Alternatively, you can drop in to our regular Morton Fraser Café for the opportunity to find out more in an informal environment.
Sue heads up our Services for Individuals and Families. She specialises in asset and estate protection, particularly lifetime tax-planning schemes and tax-efficient Wills. As an expert in financial planning, Sue helps clients find the most profitable solutions for their needs.
