1. New Statutory Limits for Intestate Estates
The Ministry of Justice has announced that the figures for those who die without making a Will have been increased so that a spouse (where there are children) or civil partner will receive the first £250,000 (increased from £125,000) plus a life interest in half the remainder.
Where there are no children, the spouse or civil partner will receive the first £450,000 (increased from £200,000. The new provisions will come into effect on 1st February 2009.
Welcome as these increases are, they cannot be a substitute for having a properly drawn up Will.
The Minister of Justice made an announcement when making the changes as follows:
"This increase will give extra protection to married couples and civil partners whose spouse or civil partner dies without making a will. But it also highlights how important it is for both men and women to make arrangements for their loved ones in the event of their deaths.
"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."
2. Recognition Abroad of Civil Partnerships
Civil Partnerships were introduced in the UK to provide for equal rights for gay and lesbian citizens. When one partner of a registered civil partnership dies, leaving property to the other, no Inheritance tax is paid on the estate - a similar exemption applies as between a husband and a wife.
Not all civil partners know that there are problems with the recognition abroad of UK Civil Partnerships. France, for example, treats civil partners as though they were strangers to each other, with the result that French death tax will be payable at 60% where one of two civil partners dies leaving to the other property in France.
Clients who are in a civil partnership are advised to take great care before buying property abroad.
