Wills, Trusts & Estates News

Inheritance laws under review for co-habiting couples - James Wallace

It is estimated that as many as 350,000 people die each year without making a will, leaving their estate to be distributed according to the current intestacy rules which date back to 1925. The Law Commission issued a new consultation paper on 29th October 2009 examining options for the reform of the intestacy rules with the aim of updating the system for ‘modern families'.

Currently, if you are married and your spouse dies leaving an estate worth more than £250,000, there is no automatic right to the entire estate of the deceased spouse which may have to be shared with children or other relatives where there are no children. If you are unmarried and your partner dies there is currently no automatic right to a share in his or her estate and you only get a share in the estate if there is a will. A claim can be made to the court but this can be both stressful and expensive.

The Commission's proposals have suggested firstly that surviving spouse should be entitled to the entire estate where there are no children and they are seeking consultation as to what the law should say if there are children. One of the difficulties with providing that the entire estate passes to the surviving spouse is that it could mean that children from a previous relationship miss out.

Secondly, the Commission have suggested that the intestacy rules should make provision for cohabiting couples who are not married. Where cohabitants have children the Commission are proposing that they should be treated on the same basis as if they were married with no minimum period of cohabitation required. Where cohabitants do not have children then the Commission have suggested that the surviving cohabitant receives the same entitlement as a spouse if they have cohabited for five years. If cohabitation had been for between two and five years then it is proposed that the surviving cohabitant receives 50% of the amount that a spouse would have received from the estate.

The consultation paper accepts that equating the 2.25 million cohabiting couples in England and Wales with those that are married or in civil partnerships is controversial but the Commission feels that "it is vital that the law remains relevant and up to date, reflecting the reality of modern society and the reasonable expectations of those that have been bereaved".

Whatever your family circumstances, it is always advisable to make a will as this is the only way to make sure that your estate passes to the people of your choosing on your death.

If you would like to arrange an appointment to discuss making a will, or would like to review an existing will then please contact our expert team on:

Birkenhead 0151 647 9381
Heswall 0151 342 6273
West Kirby 0151 625 9364

The full consultation paper can be viewed here: http://www.lawcom.gov.uk/intestacy.htm

James Wallace

This article provides a summary of a recent case/change in law/news item. It is intended for general information purposes only and is not to be relied upon. It does not constitute legal advice and should not be treated under any circumstances as a substitute for legal advice. Lees Solicitors LLP does not accept any responsibility for any loss that may arise from reliance upon the information contained within this article. The copyright in this article is owned by Lees Solicitors LLP and permission must be sought before reproduction or publishing.

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