On the 6th July 2023, UK the government announced there will be an increase to the Statutory Legacy by way of the Administration of Estates Act 1925 (Fixed Net Sum) Order 2023
The Statutory Legacy is the initial amount which a surviving spouse or civil partner is entitled to inherit when a person dies intestate (without a valid Will).
Previously, the sum was £270,000; however, from July 2023 this has increased to £322,000.
This increase is in line with the Consumer Price Index and whilst it is welcomed, it is still important to make a Will to ensure that your estate reflects your wishes and passes to where you want it to. By planning a Will you choose exactly who is to receive the benefit of your estate, who is to act for you in the administration of your estate as executor, and it allows you to appoint guardians if you have children under the age of 18.
Creating a Will will also be more tax efficient as generally everything passing to a spouse or civil partner is exempt from inheritance tax. If there is any share of the estate passing under the intestacy rules to children over and above the nil rate band tax is charged at 40%