The Challenge of Legal Rights in Scottish Succession Law
In Scotland, legal rights add a unique layer of complexity to estate planning. Legal rights are a form of forced heirship under Scottish law, giving a spouse and children an automatic entitlement to a portion of the estate, regardless of any will. However, beneficiaries cannot simultaneously claim their legal rights and inherit under the will. Unless these rights are waived, they remain in force for 20 years.
Legal rights apply only to the “moveable estate” of the deceased, which includes everything other than land and buildings, also known as heritable property. Moveable estate covers personal assets and interests in family businesses, such as shares or partnership stakes. Succession planning becomes more complex when land and buildings are owned by a family business rather than an individual, a common situation in Scottish farming families. In such cases, partnership agreements should clarify asset treatment, as legal rights often treat business-owned properties as moveable assets.
- If a spouse or children survive the deceased, they may claim half of the net moveable estate, divided equally among the children.
- If both a spouse and children survive, the spouse can claim one-third, with the children sharing in one-third.
- Any remaining estate assets are distributed according to the will or, if no will exists, under Scottish intestacy laws.
- Legal rights may be discharged during the testator’s lifetime or upon death, simplifying estate administration.