Legal experts are claiming that more money should be given to parents who still care for their children, if their spouse dies early without making a Will.
Many parents are being forced to sell their family home when their spouse dies, just so they can pay the huge inheritance tax bill.
The repercussions of not making a Will
The 'intestacy' laws in England and Wales state that, when someone dies without a Will, their spouse (or civil partner) will receive £250,000 (called the 'statutory legacy') from their spouse's estate. They will also get interest on half of the remainder of the estate.
If there are children over 18, then they will get the other half of the estate, but if they are minors, then this half will be put into trust.
If there are no children but other surviving relatives, the surviving spouse receives the first £450,000.
The inheritance tax bill
Many families are being forced to sell the family home as they cannot afford to pay the hefty inheritance tax bill.
Only spouses and civil partners are exempt from inheritance tax. If the dependent children inherit directly from a deceased parent, they may have to pay tax of 40 per cent and the surviving parent may have to sell the family home to pay the bill.
Research by the Department for Constitutional Affairs has found that there could be up to 9,000 estates where the statutory legacy prevents the surviving spouse from receiving the whole estate, and out of this number, around 4,000 where the surviving spouse may be at risk of losing their home.
Going to court
If someone dies without a Will, the surviving spouse can claim for more than the intestacy laws give them, but, to do so, they have to make a claim from the court. And this means they could face a potential legal battle with their own children.
Only this week a mother is suing her children in the High Court after her husband died and his estate was passed to their dependent children because her husband didn't make a Will.
Geoffrey Shindler, President of the Society of Trust and Estate Practitioners, said that there is an urgent need for change:
"The widow is actually suing her own children - it's a disaster."
How to protect yourself financially
According to a survey conducted by the National Consumer Council last year, only around one in every five parents makes a Will.
If you want to make sure that your spouse inherits all your assets on your death, then make a Will now.
If you leave everything to your spouse in your Will, then they can remain in the family home and they won't have to pay any inheritance tax.
More information
Find out more about the dangers of not making a Will here
Article from FT: Government statutory legacy paper is imminent
'Wills time-bomb' causing future heartache for families
Seven steps to saving inheritance tax
Save legal fees and download a DIY Wil Kit today