Does intestacy law need reform?

Currently the intestacy law doesn’t protect unmarried couples if one partner dies before making their Will. However, the survey found that most cohabiting couples didn’t know what happens to their assets if they die without a Will. 

 

There isn’t an automatic right to inheritance for unmarried partners. If someone dies without a Will, a surviving partner can lose out financially. The number of couples who aren’t married or in a civil partnership is increasing. In the last 30 years, it has more than doubled, to over 3.6million, so it’s a significant issue. According to the latest information from the Office of National Statistics cohabiting couples now represent almost one in five households. 

 

The government says it will consult the public about changes to cohabitation rules this year. This is a change to previous plans to complete changes to marriage and divorce laws first. 

 

The current laws about intestacy date back 100 years and mainly focus on spouses, civil partners, and direct relatives. Regardless of how long you have lived together as a couple, the rules don’t automatically include surviving partners when someone dies. Unless formally adopted, stepchildren don’t have inheritance rights either. As the fastest-growing family types, cohabiting couples and blended families face disadvantages compared to married couples with children. 

 

As a result, long-term partners may have to make a claim using separate laws concerning dependants. In addition, as the value of estates rise, probate disputes have increased and many end up in court. 

 

Proposed changes to make the intestacy laws fairer for modern families include: 

a qualifying period for inheritance rights between cohabiting couples of five years, for example 

extending intestacy rights to financially dependent stepchildren 

giving courts additional powers to make inheritance fairer when someone dies without a Will. 

 

If the rules don’t change more families may resort to the laws concerning provision for dependants. This is costly and can lead to court cases. By updating the intestacy laws couples will have more clarity and disputes will reduce. 

 

One challenge is how to define ‘cohabitation’, especially if couples don’t live together continuously. This could happen if one partner works abroad or someone has caring responsibilities, for example. The implications of partners remaining married whilst living with someone else also add complexity. Stepchildren in blended families could also miss out on an inheritance unless new provisions recognise them, even when their parents marry. While they might trust each other to provide for stepchildren when a partner dies many things can change. People can lose touch or re-marry, for example, changing priorities and leading to disputes. 

 

Writing a Will to make your wishes clear is the best solution while we wait to see what happens next.