With effect from 1 February 2011, the value of a house which a surviving spouse or civil partner may claim from his or her deceased spouse's/partner's intestate estate has been increased from £300,000 to £473,000.
This entitlement forms part of what is known as "prior rights", which also include increased figures for:
- the right to receive household furniture up to a value of £29,000; and
- the right to a cash sum of up to £89,000, or £50,000 where the deceased leaves surviving children.
The Succession (Scotland) Act 1964 originally intended to ensure that, in all but the most exceptional of circumstances, a surviving spouse inherits the family home.
The limit was last set in 2005 and the Scottish Government decided that it was time to increase the maximum amounts which can be claimed, out of concern that the previous limit was insufficient to cover increasing property values.
Concerns have, however, been raised as to the impact of the change on any children of the deceased, as an increase in the amount available to the surviving spouse/civil partner will result in a corresponding reduction in the value available to any children.
While in the majority of cases this may not be problematic, where the deceased had children from a previous relationship they might have cause to question why their inheritances have been reduced or even eliminated - bearing in mind that they will have no automatic right to inherit on the subsequent death of the "surviving" spouse/civil partner (who is not their parent).
It is worth stressing that prior rights arise only on intestacy – i.e. where the deceased dies without leaving a Will. Accordingly, while it is open to debate whether the recent Government change to this area will be more often beneficial than problematic, all uncertainty can be avoided if a properly drafted, up-to-date Will is in place.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
