Inheritance and Trustees’ Powers Bill [Lords]

Dan Jarvis Excerpts

Wednesday 26th March 2014 Commons Chamber

[Dan Jarvis (Barnsley Central) (Lab)]

I thank the Minister for laying out in some detail the Government’s position on the Bill. As he outlined, it introduces a number of logical and constructive changes to the current laws on intestacy and family provision that apply in cases where a person dies without having made a valid will. As I have said in our previous debates, these are sensible reforms and Labour Members welcome them. The Bill simplifies what is, in practice, often an over-complicated area of family law. It revises legislation that has not been reviewed for over 20 years, in some instances amending laws dating as far back as 1925. It updates rules better to reflect the circumstances of families living in 21st-century Britain, and it irons out a number of minor technical issues.

I thank the Minister for the way in which he has steered the Bill through the House and engaged with Labour Members during this process. I also thank those in the other place and all the other Members of this House who have helped to scrutinise and improve the Bill, as well as the officials, officers and staff of the House who have helped to facilitate matters. I pay particular tribute to the Law Commission. The changes we are considering today are ultimately the culmination of a project it began in 2008 and the draft Bill it published in 2011. I thank it for its work over the past five years in helping to bring us to this point.

Let me turn briefly to the substance of the Bill. I have two general comments to make and one very brief question to put to the Minister. Both my points are reflected in the case of Pablo Picasso, with whom right hon. and hon. Members will be familiar as one of the great artists of the late 19th and early 20th centuries. Forty years ago, Picasso died at the age of 91. As well as a glittering career and a substantial artistic legacy, he left behind a significant estate that included much of his artwork, five homes, and a small fortune in cash, bonds and other assets. This would become the subject of some dispute, because what Picasso did not leave behind was a valid will. It would take six years before his estate was settled. It was eventually divided up between six different heirs, and the whole case cost some $30 million.

That is not a unique case and right hon. and hon. Members will know of other, more contemporary examples, but, even though Picasso was born in Spain and died in France, the lesson is just the same for us considering laws here in the UK. In essence, matters of intestacy and family provision claims can be long and complicated processes. There are numerous cases every year and, although some of them are unavoidable, the law should be as simple and straightforward as possible and we should encourage people to avoid them altogether by making a valid will.

As I said on Second Reading, the Law Commission stated in its 2011 report on intestacy that there are

“many instances where the current law is outdated, confusing or places unnecessary obstacles in the way of those with a valid claim to share in a deceased person’s assets.”

I know that the Minister will agree that that simply is not acceptable, especially when the people who have to manage the distribution—or unsatisfactory distribution—of an estate will also be coping with the loss of a loved one at the same time. Therefore, although these are largely technical changes, we should be mindful that even the most minor of improvements to the way in which the system works could make a world of difference to those families affected. The Opposition are hopeful and confident that this Bill will resolve many of the issues and we will be looking closely at the situation.

The Minister and I are united in recognising the importance of encouraging people to make wills. As has been acknowledged many times during our debates on the Bill, its proposals will come into effect only when someone has sadly passed away without having made a will or some other sort of binding declaration. If I may restate the figures, roughly 220,000 people died in such circumstances in 2011 and the Law Commission estimates that as many as two thirds of the UK adult population do not have a will. According to a survey carried out by the National Centre for Social Research, that includes as many as a fifth of people over the age of 75 and more than 90% of young adults under the age of 25. The Law Commission has also stressed that those who need a will most are the least likely to have made one. We need to do all we can to reach out to all sections of society on the importance of this particular issue.

Discussing what to pass on after one dies is not the easiest thing to talk about, but we need to get much better at it. I know that the Minister agrees with that. As he has said, we will meet shortly to discuss that and I look forward to continuing this debate with him over the weeks ahead.

May I ask the Minister to clarify one issue? The Government have accepted almost all of the Law Commission’s recommendations for reforming the intestacy laws. However, they have not adopted rules that would have applied to the surviving partner in a co-habiting couple. The Minister has said that there are no immediate plans to address that, but it is an issue, because will-making is far less common among couples who live together but are not married. More than 2 million couples live in such circumstances, but only about 13% of them have made a will and many do not appreciate that they have no automatic right of inheritance if one of them dies without leaving a valid will.

The Law Commission set out proposals to address the situation in its draft Inheritance (Cohabitants) Bill, but the Government previously indicated that the changes would not be implemented during this Parliament. In 2011 the then Minister, the hon. Member for Huntingdon (Mr Djanogly), informed the House that they had no intention to focus their efforts on them at that particular time. I am mindful of the Minister’s earlier comments, but given that the Inheritance and Trustees’ Powers Bill is so close to receiving Royal Assent, will he reconsider and agree to look at that specific area prior to the next general election?

Let me conclude by repeating that the Opposition welcome the action that is being taken and we are ready to work with the Minister to help to get the reforms right, because if we can save just a few grieving families from having to go through the intestacy procedures and make life a little easier for those who have to, that will make a real difference.