1. Intestacy Flashcards
What are the two key issues to consider when determining how a deceased’s estate will pass?
Whether the deceased left a valid will and the nature of the assets owned by the deceased.
What is the term used to refer to assets capable of passing under a will or by intestacy?
Succession estate or distribution estate.
What does the term ‘succession estate’ refer to?
All property that a person owns beneficially at the date of their death capable of passing to their personal representatives.
What is a donatio mortis causa (DMC)?
A gift made in contemplation of death with specific requirements.
What are the three requirements for a valid donatio mortis causa?
- The gift is made because the donor believes they may die imminently of a particular cause.
- The donor makes it clear that the gift is conditional upon them dying.
- The donor either parts with the property or something representing ownership.
True or False: Discretionary pension scheme benefits are included in the deceased’s estate for distribution purposes.
False.
What happens to insurance policy proceeds if the policy is written in trust for another person?
The proceeds do not form part of the succession estate.
Fill in the blank: Statutory nominations allow a person to make a nomination in accounts such as Friendly Society, Industrial Society, and _______.
Provident Society.
What happens to property held as beneficial joint tenants when one tenant dies?
It automatically passes to the other joint tenant(s) by survivorship.
What distinguishes tenants in common from joint tenants in terms of succession estate?
Tenants in common have a separate, divisible share that passes into the succession estate upon death.
What is the effect of being a life tenant under a life interest trust on the succession estate?
The beneficial life interest does not form part of the succession estate.
When identifying a deceased person’s succession estate, what is usually not included?
The value of assets held in a trust.
What is the statutory order of entitlement for intestacy as set out in the AEA 1925?
It prioritizes relatives based on their relationship to the deceased.
What does ‘issue’ refer to in the context of intestacy rules?
Children and remoter linear descendants, e.g., grandchildren.
What is the consequence of a deceased being partially intestate?
The will applies to the extent possible, and any remaining property is dealt with under the intestacy rules.
How are personal representatives of an intestate deceased empowered to handle undisposed property?
They hold it on trust with power to sell under s 33 Administration of Estates Act 1925.
What is the value of A’s succession estate if it includes a house valued at £400,000, bank accounts of £25,000, and a life assurance policy of £50,000?
£475,000.
True or False: The death of a life tenant automatically results in the distribution of trust assets.
False.
What happens to a vested remainder interest in a trust upon the death of the life tenant?
It can pass to the estate if it is vested ‘in interest’.
What must be produced to release benefits from discretionary pension schemes?
A death certificate.
What does the term ‘partial intestacy’ mean?
When a will does not dispose of the entire estate, leading to some property being handled under intestacy rules.
What does ‘issue’ refer to in intestacy rules?
Children and remoter linear descendants e.g. grandchildren
Includes legitimate, illegitimate, legitimated, and adopted children, as well as conceived but not yet born children.
What is the highest-ranking class of relatives in intestacy rules?
Spouse and issue
If the intestate leaves a spouse and issue, what is the spouse entitled to?
- Personal chattels
- Statutory legacy of £322,000
- Half the residue
What is the statutory order of entitlement when there is no spouse or issue?
- Parents
- Siblings of whole blood
- Siblings of half blood
- Grandparents
- Uncles and aunts of whole blood
- Uncles and aunts of half blood
- The crown as bona vacantia
True or False: The spouse has an automatic right to receive the deceased’s share of the marital home.
False
What can a surviving spouse do regarding the marital home under intestacy rules?
They can make an election to appropriate the home in full or partial satisfaction of their statutory entitlements.
What is the statutory definition of ‘personal chattels’ in intestacy rules?
Tangible moveable property excluding money, business property, and investment property.
Fill in the blank: If the deceased left a spouse but no issue, the spouse inherits the _______.
estate
What happens to the estate if the deceased has no spouse or issue?
It passes to the relative(s) who rank highest in the statutory order.
What happens to the estate of a deceased person who has children under 18?
Their share is held in statutory trusts until they reach 18.
How is the estate divided among siblings if the intestate is survived by both parents?
The succession estate is divided equally.
What is the value of the spouse’s entitlement if the estate is £842,000 cash and £10,000 personal chattels?
£592,000
What does the spouse inherit from the estate?
- All personal chattels
- A statutory legacy of £322,000
- Half of the remaining residue
What is the total estate value when cash is £842,000 and personal chattels are worth £10,000?
£852,000
How is the residue of the estate calculated?
Total estate - (Chattels + Statutory Legacy)
What is the statutory legacy amount under intestacy rules?
£322,000
True or False: Long-term partners who are not married or in a civil partnership are entitled to inherit under intestacy laws.
False
What happens to the estate of a deceased person if they leave no spouse or issue?
The estate is distributed according to the statutory order of entitlement.
In the case of intestacy, what happens if there is more than one person in the relevant category for inheritance?
The succession estate is divided equally.
What does the term ‘bona vacantia’ refer to in intestacy rules?
Property that passes to the crown when there are no entitled heirs.
Fill in the blank: The spouse can ‘buy’ the deceased’s share of the property using the money they would have received from the _______.
estate
