Gordon, from Newmarket, asks: "My father, who lived in Glasgow, died recently without leaving a will. In a previous finance column, you stated that when a married man dies without a will, his wife may only be entitled to the first £125,000 of the estate if the deceased also left children. Is that all my mother will receive?"
In Scotland, the law of intestacy is very different to that of England and Wales. In Scotland, after funeral costs, debts and other liabilities have been met, a widow has certain 'prior rights' in the deceased's estate, where no will has been left.
She is entitled to her husband's share of the house in which she was also resident at the time of her husband's death, up to a value of £300,000 in respect of his interest.
She is also entitled to any furnishings and furniture within that house up to the value of £24,000 and to the first £42,000 out of the estate if the deceased left children or descendants of children, ie grandchildren.
'Prior rights' are a first claim on the estate. A widow and her children are also entitled to certain 'legal rights' out of the deceased person's moveable estate.
(In Scottish law, heritable property means land and buildings, while moveable property includes such things as money, investments, cars, furniture and personal effects).
The surviving spouse is entitled to one-third of the deceased's moveable estate where the deceased left children or grandchildren.
The children are collectively entitled to one-third of the deceased's moveable estate if the deceased left a spouse, or to one-half of it if the deceased left no spouse.
Each child has an equal claim.
In reality, in most cases, the children often do not claim their legal rights, so that everything goes to the surviving parent.
However, they have 20 years in which to make their claim.
This can be useful where the surviving spouse leaves a taxable estate; if the children claim their legal rights on the estate of the first spouse to die, they can reduce the
inheritance tax on the second estate.
I hope this helps, but do consult a solicitor in Glasgow, as there may be an opportunity for you and your mother to effect a deed of variation and create a will on behalf of your father as if he had made it himself before death.
This will probably cost around £500, but it will avoid the problems of intestacy.
Contacting NickNick Plumb is an independent financial adviser. Send your questions to Nick at Bright Financial Planning, 58 Station Road, Sudbury, Suffolk, CO10 2SP, email them to
nickplumb@aol.com or telephone Nick on 01449 675674.
Nick's answers to reader questions in this column are provided only as a general guide and do not constitute personal financial advice. For any readers requiring specific advice on their own circumstances, Nick is happy to offer a complimentary initial meeting.
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