The Statutory Legacy: What is it? And how could it affect my entitlement on an Intestacy?

In this article we explain the concept of the statutory legacy, when it applies, and how it can impact the distribution of a deceased spouse’s/civil partner’s estate.

When a person dies without a valid Will, they are said to have died ‘intestate’. In this situation, their estate will be distributed in accordance with the ‘Intestacy Rules’. These Rules specify who is entitled to a share of the deceased’s estate, depending on which relatives survive them. The Rules are strict, and often do not reflect the actual wishes of the person who has died.

If the deceased is survived by a spouse/civil partner, and had no children, the surviving spouse/civil partner is entitled to the whole of their spouse’s/civil partner’s estate, whatever its value might be.

However, if the deceased is survived by a spouse/civil partner AND had children, the surviving spouse/civil partner will be entitled to a fixed amount, known as the statutory legacy.

The level of the Statutory Legacy depends on the date of death. For deaths on or after 26 July 2023 the Statutory Legacy is £322,000. If the death occurred between 6 February 2020 and 25 July 2023, the Statutory Legacy was £270,000; it was lower still for deaths prior to 6 February 2020.  

What is the impact of the Statutory Legacy on a surviving spouse/civil partner, and the Deceased’s children?

If the overall value of the intestate’s estate is less than or equal to the Statutory Legacy, the effect is that the surviving spouse/civil partner will inherit everything, and the children will not be entitled to any of their late parent’s estate.

If, however, the estate is worth more than the statutory legacy, the spouse will be entitled to the statutory legacy, and the balance (known as residue) is split between the surviving spouse/civil partner and the deceased’s children; the surviving spouse/civil partner gets one half, and the other half is divided between the children.

What about cohabitees?

One of the ideas behind the statutory legacy is that it affords a surviving spouse/civil partner a degree of financial protection. However, it is important to note that a surviving cohabitee is not entitled to the statutory legacy, which could mean a cohabitee risks losing their home, or that they are denied future financial security.

What if the Intestacy Rules/Statutory Legacy results in someone not getting a reasonable share of the estate?

If the result of applying the Intestacy Rules and/or the Statutory Legacy means that reasonable provision isn’t made for someone, they may be able to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975. If successful, the court will order an alternative distribution of the estate that is more favourable to them, taking into account the value of the estate and the circumstances of the claimant and those entitled under the Intestacy.

The application of the Intestacy Rules, and the Statutory Legacy, can lead to harsh, often unintended, results. The easiest way to avoid such problems is to make a valid will with a specialist solicitor. Because life circumstances change over time, it is also essential to regularly review and update your will to reflect changes in your personal situation and finances. changes.

At Johnson Astills, we offer fixed fee initial consultations, at which we will discuss your matter in detail and provide preliminary advice and guidance.

If you are a surviving spouse/civil partner, cohabitee or child and are concerned that the application of the Intestacy Rules, or the Statutory Legacy, means that reasonable provision has not been made for you, contact our Dispute Resolution team for guidance.

Our Wills and Probate department can help you prepare and execute a valid will, reflecting your wishes.

For further information, or to arrange a fixed fee consultation, please call our Leicester office on 0116 255 4855 or our Loughborough office on 01509 610 312, or fill in our free online enquiry form and one of our friendly team will be in touch.