Important Changes to Statutory Legacy: What Surviving Spouses and Civil Partners Need to Know

When a loved one passes away without writing a Will, their estate is distributed under a set of legal rules called intestacy laws. In such cases where there is a surviving spouse or civil partner, that spouse or civil partner is entitled to a fixed sum from the deceased's estate, known as the statutory legacy. This article will provide an overview of the statutory legacy and how it has evolved over the years.

The Statutory Legacy Explained

The statutory legacy is the fixed net amount a surviving spouse/civil partner is entitled to when the deceased dies intestate. The primary purpose of the statutory legacy is to ensure financial protection for the surviving spouse or civil partner.

Historically, the extent of the statutory legacy has always been determined by specific criteria, such as the presence of surviving children, parents and siblings. The requirements for the statutory legacy have changed significantly over the years, notably since the implementation of the Inheritance and Trustees Powers Act 2014 on the 1st of October 2014. 

Statutory Legacy Rules

For deaths before the 1st of October 2014 - If a spouse or civil partner survived the deceased, they were entitled to take the deceased's chattels and the statutory legacy. They were also entitled to a share of the remaining (residuary) estate if there were any issue (meaning children), parents, siblings, nephews or nieces.

If there were no surviving issue, the parents, siblings, nephews and nieces are entitled to the whole residuary estate.

The amount of the statutory legacy was:

• £250,000 (or £125,000 before the 1st of February 2009) if the deceased passed away leaving a surviving spouse or civil partner and any issue (i.e. children); or
• £450,000 (or £200,000 before the 1st of February 2009) if the deceased passed away without issue but with one or both parents surviving or no parents surviving but with surviving siblings or their issue.

One-half of the rest of the estate would go to the surviving spouse as a "life interest", with this half reverting to the children on the surviving spouse's death. The other half would go to the surviving children immediately.

For deaths on or after the 1st of October 2014 but before the 6th of February 2020, the statutory legacy was:

• £250,000 if the deceased had any issue.
• There was no formal statutory legacy if the deceased died, leaving a surviving spouse or civil partner without issue as the whole estate went to the spouse or civil partner.

The spouse or civil partner became entitled to an absolute interest in one-half of the rest of the estate, with the other half share passing to the children on statutory trust.

The Inheritance and Trustees Powers Act 2014 mandated the Lord Chancellor to review the statutory legacy's level at least every five years, the purpose of this periodic review being to ensure that the statutory legacy kept pace with economic changes and remained fair for surviving spouses and civil partners.

The amount of the statutory legacy was increased in 2019, and for deaths on or after the 6th of February 2020, it was:

• £270,000 if the deceased had any issue.
• There was no formal statutory legacy if the deceased died, leaving a surviving spouse or civil partner without issue as the whole estate went to the spouse or civil partner.

The amount of the statutory legacy has just increased again, and for deaths on or after the 26th of July 2023, it is:

• £322,000 if the deceased had any issue.
• There is no formal statutory legacy if the deceased dies, leaving a surviving spouse or civil partner without issue, as the whole estate goes to the spouse or civil partner.

The spouse or civil partner's entitlement and that of the children has remained unchanged since 2014, so the spouse or civil partner remains entitled to an absolute interest in one-half of the rest of the estate and the children remain entitled to the other half on statutory trust.

The statutory legacy remains an important safety net for surviving spouses and civil partners when their loved ones pass away without writing a Will. Individuals need to be aware of the rules and the recent updates regarding the statutory legacy to understand their rights and entitlements in case of intestacy. The periodic reviews and adjustments of the statutory legacy by the Lord Chancellor demonstrate the government's commitment to keeping the law fair and up-to-date in changing times.

If you have any questions or concerns about Wills, Statutory Legacy or Intestacy Laws, please get in touch with Kevin Horn, Partner and Solicitor in our Private Client team on 013 2922 2027 or email kevinhorn@warnergoodman.co.uk.