The Labour government is facing calls to enact the most significant reform of inheritance law in half a century, with a focus on strengthening protections for unmarried partners and modernising rules for contemporary family structures.
Warning Over "Outdated" Rules
Legal experts have directly warned the Labour administration that too many individuals find themselves with no entitlement to their partner's estate under current legislation. This stark warning highlights a system that many argue has failed to keep pace with societal change since the landmark Inheritance Act of 1975 was introduced by Harold Wilson's government.
That original act was designed to prevent widows from facing financial hardship, granting them a right to a share of their husband's estate. Stuart Downey, partner and head of the Will, Trust and Estate Disputes team at TWM Solicitors, emphasised its historical impact: "The legislation had a huge practical impact on the living standards of the surviving wife."
The Modern Family Dilemma
Despite the 1975 reforms, the law is now seen as inadequate. UK law firm TWM Solicitors contends that more must be done to update the law to reflect the variety of family types common today. A critical gap exists for cohabiting, unmarried couples.
"Some couples may be living together for decades as unmarried partners, only to find that, if no Will has been prepared, they aren’t entitled to a share of their partner’s estate," Mr Downey warned. "This could mean they have to move out of the home they have shared and into rental accommodation."
He also noted that the old rules, which the 1975 act addressed, excluded other deserving relatives like married daughters, sons over 21, and dependent nieces and nephews.
How Current Intestacy Rules Work
The existing rules for when someone dies without a Will (intestacy) are seen as a key area for potential reform. Under current law:
- If the estate is valued at more than £322,000, it is divided between the surviving spouse or civil partner and the children.
- If the estate is £322,000 or less, the children do not inherit.
- The partner inherits all personal property, the first £322,000 of the estate, and half of the remainder.
- The children inherit the other half of the remaining estate, divided equally if there is more than one child. This includes biological and adopted children from any relationship.
These rules, however, offer no automatic protection for unmarried partners, leaving them vulnerable if their significant other has not made a valid Will.
The push for change centres on the argument that the legal framework must evolve to provide security for all committed relationships and diverse family units, potentially marking the most substantial shift in inheritance law in five decades.
