The intestacy rules that govern how assets are divided if someone dies without making a will changed from 1 October 2014. The changes do not affect people who die with less than £250,000 in assets but for those that leave more the changes are very significant.

Prior to 1 October 2014, a surviving spouse or civil partner in a relationship without children would inherit the first £450,000 of the estate plus half of the remainder. The other half of the remainder would pass to the surviving blood relatives of the deceased, such as their parents or brothers and sisters. In many cases these rules necessitated the sale of property in order to split the deceased’s estate. From 1 October 2014, this position has now changed and where the deceased is survived by a spouse or civil partner and there are no children or remoter issue, the spouse or civil partner will inherit the whole of the deceased’s estate outright.

There are also changes where the deceased leaves children. Prior to the change there were complicated rules that gave the spouse or civil partner the first £250,000 plus an entitlement to a life interest in half the remaining amount. This meant the spouse / civil partner could take income from the money, but not the capital. The rule changes now provide for the surviving spouse /civil partner to be able to receive one half of the residue in full i.e. the capital rather than just the income.

The £250,000 and £450,000 limits were previously fixed. Going forward, these figures will rise in line with the Consumer Prices Index. There were also some other changes relating to inheritance rights for unmarried fathers and adopted children. If there are no living relatives, the estate will go automatically to the Crown.

Whilst some of these changes are welcome, they are still no replacement for making a will and ensuring that your assets are divided amongst your beneficiaries in the way best suited to your personal circumstances.