The Will Centre

The amount of money a spouse receives if their partner dies without making a will could increase, the government announced in 2005.

If a person with children dies without leaving a will, their surviving spouse will receive only the first £125,000 of their estate. If there are no children but there are surviving parents or siblings the spouse will receive £200,000.

The Department for Constitutional Affairs (DCA) estimates that under the intestacy rules, in up to 9,000 cases each year a surviving spouse will not receive all of their partner's estate.

In 4,000 of these cases, the family home may have to be sold, so that money from the estate can be paid to the children or other relatives.

A consultation paper published in 2005 by the DCA proposed that the limits be increased so that, where children are involved, a spouse can receive £350,000 of an estate and where there are no surviving children they can receive £650,000.

"The death of a spouse is always a traumatic event, but can be particularly so where they die without leaving a will," said the minister for civil justice, Baroness Ashton in 2005. "In these cases, the financial future of the widow or widower and any children will depend on how much money they can inherit under the intestacy rules."

The consultation paper suggests that the payment levels in 2005, which were set in 1993, may now be out of date, primarily due to the increase in house prices. According to 2005 figures the average house price now stands at £162,411 - some way above the £125,000 limit.

However, the DCA is concerned about cases where the legacy paid to the surviving spouse could mean that there are no funds left to distribute to any children. This can be particularly contentious when the deceased has children from an earlier relationship.

In 1993, more than 90% of estates were worth less than £125,000 and 98% of estates were valued at under £200,000. In 2005 these figures are 59% and 79% respectively.

Research carried out in March 2005 by insurer Standard Life suggested that 57% of adults in the UK had not drawn up a will, including 40% of people with homes worth more than £150,000.

So what has happened since this was proposed in 2005. Alan Porter, of The Will Centre, says “Nothing at all has changed! The levels set in 1993 and that were being reviewed in 2005 still apply! If you consider it is almost impossible to buy a house for under £125,000 you can see that there is a real problem. The best way to avoid any problems is to make a Will.”