On 1st February 2012 changes to the succession thresholds came into force. The legal changes increase the maximum property and cash values which can be transferred to a surviving spouse or civil partner where a person dies without a Will in Scotland. They also increase the threshold for small estates (where a Sheriff Clerk can assist with the administration of an estate) from £30,000 to £36,000.
What are the new rules?
Where a person dies without a Will in Scotland, their surviving spouse or civil partner is entitled to certain 'prior rights' to their estate. Since 2005, these prior rights have been to:
- the deceased's share in the family home up to a maximum value of £300,000;
- house contents up to £24,000; and
- cash up to £42,000 where there are children and £75,000 where there are no children.
For deaths from 1st February, the prior rights of a surviving spouse or civil partner are increased to:
- the deceased's share in the family home up to a maximum value of £473,000;
- house contents up to £29,000; and
- cash up to £50,000 where there are children and £89,000 where there are no children.
What is the effect of the new rules?
The changes were introduced to reflect the increase in property prices since the last review in 2005 and with the intention that most spouses and civil partners will avoid having to sell the family home to meet other claims on the estate on the death of their loved one.
However, the increase in the thresholds may not be good news for everyone. It has been highlighted that children whose parents have remarried may lose out if their mother or father dies without a Will. With second marriages becoming more and more common place, an increasing number of families may be affected.
How can I protect my family?
The only way to ensure that your assets pass to those you wish on your death is to make a Will. Every adult should consider putting a Will in place, but this is especially important where family relationships are more complicated or where you have children from a previous relationship and have remarried. Please get in touch to discuss how the new rules affect your circumstances.
