Recent Changes to Statutory Legacy Amounts: Safeguarding Your Loved Ones with a Will

As of the 26th July 2023, the Government has taken a significant step in underlining the importance ...

As of the 26th July 2023, the Government has taken a significant step in underlining the importance of making a Will by increasing the ‘statutory legacy’ sum. These upcoming changes shed light on the crucial reasons why creating a Will has become even more critical for safeguarding your loved ones and ensuring your wishes are followed.

The Impact on Families

The recent changes to statutory legacy amounts can have a profound impact on families across the nation. If an individual passes away without a Will, the new statutory legacy has been raised to £322,000, a substantial increase from the previous £270,000. Under this new provision, a spouse or civil partner will automatically receive the statutory legacy sum (£322k), along with 50% of the remaining estate. The remaining 50% of the estate will be allocated to any children, and in the absence of children, it will go to the surviving spouse or civil partner.

While these changes are a positive step towards protecting the interests of married or civil partners, they also underscore the potential vulnerability of unmarried couples. Regrettably, cohabiting couples are not covered by the statutory legacy benefits, despite commonly referring to themselves as common law partners. It is essential for unmarried partners to recognise that common law partnership has no legal status, leaving them at risk of inheriting nothing in the absence of a Will.

Why Having a Will is So Important?

In light of the revised statutory legacy amounts, the significance of having a Will cannot be overstated. Regardless of your marital status, creating a Will ensures that your wishes are followed and that your loved ones are adequately provided for after your passing.

For families with an estate value below £322,000, having a Will means that the surviving spouse or civil partner will inherit the entire estate, eliminating any potential legal complications or disputes. It offers peace of mind, knowing that your partner will be well-taken care of in the event of your untimely demise.

For estates exceeding the new threshold of £322,000, not having a Will can lead to considerable problems and uncertainties. The distribution of assets may not align with your desires, leading to potential conflicts among family members. By creating a Will, you retain control over how your estate is divided, ensuring that your assets go to the individuals or causes that matter most to you.

Additionally, a Will allows you to appoint guardians for your children if they are minors, sparing your loved ones from the anguish of legal battles over custody arrangements.

In conclusion, the recent changes to statutory legacy amounts emphasise the crucial role of having a Will. It is not only an essential document for married or civilly partnered individuals but also offers crucial protection to cohabiting couples. By taking the time to create a Will, you secure the well-being of your loved ones and guarantee that your estate is distributed according to your wishes. Don’t wait any longer – consult a Soteria Planning today to safeguard your family’s future.