New Case Highlights Urgent Need For Review Into Inherited Estates

Urgent review needed as law fails to account for cohabiting couples Three year old ''inherits'' £750,000 estate A new case has highlighted the urgent need for a full review into the laws of inherited estates, says City law firm Wedlake Bell.

Wedlake Bell says that a recent ruling, in which the cohabiting partner of a deceased man was bypassed for inheritance of an estate worth potentially £750,000 in favour of their three year old son, highlights the need for reform of this area of law. (Wright v Gater, 2011)

Wedlake Bell explains that current 'intestacy rules', which govern what happens to the deceased's estate after his or her death, are inflexible and so discriminate against the growing number of cohabiting couples who have children. Under current intestacy laws, an estate passes directly to the deceased's children if he or she is unmarried and is managed by trustees until the children are 18.*

The Law Commission is due to publish a full review into intestacy laws in the coming months, but Wedlake Bell warn that the complex legal issues surrounding cohabiting couples may see politicians bypass the subject in favour of more straightforward reforms in other areas of the law.

Oliver Embley, Solicitor in Wedlake Bell's Private Client team, comments: "Current intestacy rules do not take into account changing family structures. Increasingly couples are choosing to live together and have children without marrying. If one partner dies, then the other may not inherit anything if there is no will in place."

"This can lead to significant hardship when longstanding cohabitants are bereaved. Many cohabitants do not realise that, if one of them dies without leaving a will, the other may not automatically inherit anything under the intestacy rules."

"In cases like these, the bereaved partner is left with no option but to make an application to the court for a share of the estate, at substantial expense. This can be particularly stressful, both emotionally and financially, at a time when any partner will be mourning."

"In addition, many parents might be concerned to know that their children...