Don’t leave your partner without a home – make a will

The amount of money a husband or wife can automatically inherit if their partner dies without making a will increases on 1st February – but it still leaves the surviving spouse in danger of losing the family home. Alison Playle examines the risks.

Many people believe that everything they own will automatically pass to their partner when they die so there is no need to make a will.

This is a complete misconception, unfortunately, and one that has led to much hardship and heartache as well as causing lifelong rifts in families.

The reality is that if a person dies intestate – without having made a will – then their estate is divided between surviving relatives in a manner laid down by the law. As the law has no way of knowing exactly what the deceased person would have wanted, it tries to be as fair as possible to the close relatives.

Until now, if the deceased person had children then the surviving spouse received £125,000 from the estate. If there were no children then that figure increased to £200,000.

The rest of the estate was shared out between the spouse on a limited basis and the children (or other relatives if there were no children). These thresholds - known as the statutory legacy for people dying intestate - have been in force since 1993.

On 1st February this year, these figures rise to £250,000 when a deceased person leaves children and £450,000 when there are no children. The increase looks good but it is well below house inflation since 1993 – even allowing for the current economic downturn.

This is a key factor because most people’s main asset is their house. If the value of the house is above the new £250,000 threshold, the surviving spouse may have to sell up so the deceased’s children can receive their share of the inheritance. This may seem harsh but there have been several occasions where this has happened and it can cause great hardship.

Couples in second marriages are most at risk. For example, most children would probably not force their own mother out of the family home so they could inherit their share but they might have no reservations about making dad’s second wife sell up.

As many people’s family circumstances become more complicated due to second marriages, it is possible that this may become more of a problem in future.

Announcing the increases, the Justice Minister Bridget Prentice, said: “Married couples and civil partners should not assume that when their spouse or civil partner dies, they will automatically be entitled to everything. It is up to individuals to make sure that their wishes are respected by making a will.

“My message to people is, don't leave it to chance. Make sure your loved ones are properly provided for by leaving a will.”

Having made a will it is important to ensure that it is up to date and still meets your requirements, which can change considerably over the years. Things like getting married, having children, or buying property mean your will should be amended to reflect your new circumstances.

The current recession has also become another factor because of the fall in property prices and share values. If you want to provide for someone after their death, you may find that the assets you are leaving them are no longer adequate. If this is the case then you may want to change your will to compensate for the fall in the value of the assets.

Making a will can prevent all sorts of problems for your loved ones and remove the risk of unseemly family squabbles after you die. Remember it’s your money; you worked hard for it all your life so make sure that you choose who gets it rather than leave it to Government and the courts to decide.

Alison Playle is a Solicitor in the Wills and Probate Department at Andersons Solicitors. She can be contacted on 0115 988 6704 or by emailing aplayle@andersonssolicitors.co.uk.