A century of change in the value of money
Intestacy rules determine how a person’s estate is distributed if they die without a will. Introduced in 1925, the intestacy rules took effect the following year in 1926 – making this year its centenary year. Although the law has been updated over time, the difficulty is that the value of money and the way we live has changed dramatically since then.
Back in the 1920s, the statutory legacy - which is the fixed sum a surviving spouse or civil partner automatically receives from an estate when someone dies without a will, before the rest is shared under the intestacy rules - was £1,000. Back then, it was a meaningful sum! It could buy a house, cover living costs and provide genuine financial security.
Has the statutory legacy kept pace?
Today, statutory legacy stands at £270,000. While this reflects some adjustment for inflation, it has not consistently kept pace with modern wealth, particularly house prices. In many cases, £270,000 would not cover the value of the family home. This can leave a surviving spouse financially exposed, sometimes forcing difficult decisions about selling property or accessing capital at an already stressful time.
But, intestacy rules tend to fall short because they apply a one-size-fits-all approach. It does not take account of personal relationships, financial dependence or modern family structures. For example, they do not apply to unmarried partners and stepchildren, so they will receive nothing in most cases. Instead, assets may pass to other relatives - even if the deceased person hasn't had a relationship with them.
Why making a will matters more than ever
A will allows you to plan based on modern values and personal priorities, rather than relying on a framework created 100 years ago. By making a will, you can decide who inherits, protect a surviving partner, provide for children or vulnerable beneficiaries and reduce the risk of confusion or dispute.
If you would like to write or update your will, contact the Private Client team at Downs Solicitors to see how we can help.
Contact Katie Carter
