1. The Estate

Question 1

What is an ‘Estate’?

Answer 1

All the property owned by a person on their death

Question 2

What are the 5 main types of property that pass outside the estate?

Answer 2

(1) Jointly held
(2) Trust
(3) Insurance policy written in trust
(4) Discretionary pension scheme
(5) DMC - Gifts made in contemplation of death

Question 3

Jointly held property passes outside of the estate. What are 2 examples of this type of property?

Answer 3

(a) Beneficial JOINT TENANTS
(b) Joint BANK ACCOUNTS

Question 4

How does property held as beneficial JOINT TENANTS pass under testator’s death?

Answer 4

Survivorship to other JT

Question 5

What type of life insurance policy does NOT form part of the estate?

Answer 5

Written in trust

Question 6

A life insurance policy is written in trust by Mark for his wife Sally. If Mark dies what will happen?

Answer 6

Money paid directly to Sally as beneficiary (i.e. outside of estate)

Question 7

(1) Will trust property form part of the estate?
(2) What is the EXCEPTION to this rule?
(3) What should you look out for as a clue to see if the EXCEPTION in (2) applies?

Answer 7

(1) NO
UNLESS:
(2) ‘Interest in remainder’
(3) ‘Predeceasement’

Question 8

What type of pension schemes will NOT form part of the estate?

Answer 8

Discretionary

Question 9

Do DMC (gifts made in contemplation of death) form part of the estate)?

Answer 9

No

Question 10

What are the 3 conditions for DMC (gifts made in contemplation of death) to be valid?

Answer 10

(1) Contemplate dying IMMINENTLY
(2) Gift CONDITIONAL ON DEATH - “If I die…”
(3) Steps to TRANSFER OWNERSHIP

Question 11

For a DMC (gifts made in contemplation of death), the final condition is that ‘steps have been made to TRANSFER OWNERSHIP. What does this involve for
(a) Chattels
(b) Land and shares

Answer 11

(a) Possession
(b) Transfer of LEGAL TITLE