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Changes in UK to the rules of intestate could hit rural property owners

Currently the rules govern the distribution of a deceased’s estate to family members where no will is present in a fixed order of priority, specifying a respective share.

But last month the UK government announced the draft Inheritance and Trustees' Powers Bill proposing that spouses or civil partners will automatically become the main beneficiary of an estate where there is no will.

As a result, according to property firm Savills, a surviving partner’s share of the estate shall increase and make them the sole beneficiary if there are no children.

By contrast, children as well as relatives including, siblings, parents and cousins, will no longer automatically inherit part of the estate of someone who dies intestate and consequently lose out.

‘An initial benefit anticipated from this introduction includes the reduction and need for complicated trust structures that were previously formed to provide income to surviving partners whilst also providing for children,’ said Clive Beer, head of Savills rural professional services.

‘However, an undoubted concern will be the shifting of greater priority to a surviving spouse, particularly when subsequent marriage arrangements have formed, reducing the children share to a smaller final pot,’ he explained.

‘The potential dangers for rural client only emphasises the need for written wills that have been well thought through and planned to meet greater objectives of the family. You can not do nothing in the misguided hope that matters will sort themselves,’ he added.

A consultation process has been launched on the draft legislation and is open until the 03 May 2013.

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