Prescribed Part Calculation Tool
Calculate the prescribed part of an estate according to UK inheritance rules. Enter the details below to determine the statutory legacy and distribution amounts.
Comprehensive Guide to Prescribed Part Calculation in UK Inheritance
Understanding the Prescribed Part in Estate Distribution
The prescribed part is a crucial element of UK inheritance law that ensures dependants receive a fair share of an estate when someone dies intestate (without a will) or when their will doesn’t make reasonable financial provision for certain family members. This guide explains how the prescribed part is calculated, who is entitled to it, and how it affects estate distribution.
Key Legislation
The rules governing the prescribed part are primarily found in:
- Inheritance (Provision for Family and Dependants) Act 1975 – Allows certain categories of people to claim reasonable financial provision from an estate
- Administration of Estates Act 1925 – Sets out the rules for intestacy
- Inheritance and Trustees’ Powers Act 2014 – Updated the statutory legacy amounts and introduced changes to the prescribed part calculation
For official guidance, refer to the UK Government’s intestacy rules.
Who is Entitled to the Prescribed Part?
The prescribed part is designed to protect the following categories of dependants:
Spouses and Civil Partners
Surviving spouses or civil partners have the strongest claim to the prescribed part, especially when the deceased didn’t leave a will or the will doesn’t make reasonable provision.
Children
Biological and adopted children (including adult children) may be entitled to the prescribed part if they were financially dependent on the deceased or if the will doesn’t make reasonable provision for them.
Other Dependants
This may include:
- Former spouses/civil partners who haven’t remarried
- Persons treated as a child of the family
- Persons maintained by the deceased immediately before death
How the Prescribed Part is Calculated
The calculation of the prescribed part depends on several factors, including the size of the estate, the date of death, and the relationships of the beneficiaries. Here’s a step-by-step breakdown:
- Determine the net estate value: Calculate the total value of the estate after deducting funeral expenses, administration costs, and any debts.
- Apply the statutory legacy: The surviving spouse/civil partner is entitled to a fixed sum (statutory legacy) which varies based on the date of death.
- Calculate the residue: Subtract the statutory legacy from the net estate to determine the residue.
- Determine the prescribed part: This is a portion of the residue that must be made available for certain beneficiaries.
- Distribute according to rules: The remaining residue is distributed according to intestacy rules or the will’s provisions.
Statutory Legacy Amounts
The statutory legacy amount has changed over time. Here are the current and historical amounts:
| Date of Death | Statutory Legacy Amount | Prescribed Part of Residue |
|---|---|---|
| On or after 26 July 2023 | £322,000 | Half of the residue |
| Between 6 February 2020 and 25 July 2023 | £270,000 | Half of the residue |
| Between 1 February 2009 and 5 February 2020 | £250,000 | Half of the residue |
| Before 1 February 2009 | £125,000 | Half of the residue |
Practical Examples of Prescribed Part Calculations
Example 1: Death After 26 July 2023 with Spouse and Children
Scenario: John dies on 1 August 2023 leaving a wife, Mary, and two children. The net estate is £600,000.
- Statutory Legacy: Mary receives £322,000
- Residue: £600,000 – £322,000 = £278,000
- Prescribed Part: Half of £278,000 = £139,000 (must be made available for children)
- Distribution:
- Mary receives: £322,000 (statutory legacy) + £139,000 (half of residue) = £461,000
- Children share: £139,000 (the prescribed part)
Example 2: Death Before 6 February 2020 with No Spouse
Scenario: Sarah dies on 1 January 2019 leaving two children and no spouse. The net estate is £400,000.
- No Statutory Legacy: Since there’s no surviving spouse, the entire estate is residue
- Prescribed Part: Not applicable in this case as the entire estate passes to children under intestacy rules
- Distribution: Both children inherit £200,000 each
Common Misconceptions About the Prescribed Part
Misconception 1: The prescribed part is always half the estate
Reality: The prescribed part is half of the residue (what’s left after the statutory legacy), not half of the entire estate. The actual percentage varies based on the estate size and statutory legacy amount.
Misconception 2: Only children can claim the prescribed part
Reality: While children are common beneficiaries, other dependants (like former spouses or maintained persons) may also be entitled to claim against the prescribed part under the Inheritance Act 1975.
Misconception 3: The prescribed part overrides the will
Reality: The prescribed part only comes into play when someone dies intestate or when a will doesn’t make reasonable provision. It doesn’t automatically override properly executed wills.
When to Seek Professional Advice
While this calculator provides a good estimate, prescribed part calculations can become complex in certain situations. You should consult a solicitor specializing in probate and inheritance if:
- The estate includes business assets or overseas property
- There are disputes between potential beneficiaries
- The deceased had multiple marriages or complex family arrangements
- The estate value is near the inheritance tax threshold (currently £325,000)
- There are potential claims under the Inheritance Act 1975
The Law Society can help you find a qualified solicitor in your area.
Historical Context and Recent Changes
The rules surrounding the prescribed part have evolved significantly over time. Understanding this history can provide valuable context for current calculations.
Key Milestones in Prescribed Part Legislation
| Year | Legislation | Key Changes |
|---|---|---|
| 1925 | Administration of Estates Act | Established basic intestacy rules but didn’t include prescribed part concept |
| 1975 | Inheritance (Provision for Family and Dependants) Act | Introduced the concept of reasonable financial provision and allowed claims against estates |
| 1995 | Various amendments | Increased statutory legacy amounts and adjusted prescribed part calculations |
| 2014 | Inheritance and Trustees’ Powers Act | Significantly increased statutory legacy to £250,000 (later £270,000 and £322,000) and simplified prescribed part rules |
For academic analysis of these changes, see the Oxford Law Faculty’s research on inheritance law reforms.
Frequently Asked Questions
Q: What happens if the estate is worth less than the statutory legacy?
A: If the net estate is less than the statutory legacy amount, the surviving spouse/civil partner receives the entire estate, and there is no residue (and thus no prescribed part) to distribute to other beneficiaries.
Q: Are stepchildren entitled to the prescribed part?
A: Stepchildren don’t automatically qualify under intestacy rules, but they may be able to make a claim under the Inheritance Act 1975 if they were financially dependent on the deceased.
Q: How is the prescribed part divided among multiple children?
A: The prescribed part is divided equally among all eligible children, regardless of their age. If a child has predeceased the parent but has living descendants, those descendants may inherit their parent’s share.
Q: Does the prescribed part affect inheritance tax calculations?
A: The prescribed part itself doesn’t directly affect inheritance tax, but the overall distribution of the estate may impact how much tax is due, especially concerning spousal exemptions and the residence nil-rate band.