13.4 Intestacy and Property Passing Outside The Estate

Question 1

When do the rules of intestacy apply?

Answer 1

• deceased died without having made a will or didn’t make a valid will (mistake / error)
• the deceased’s will did not dispose of the entire property because the gift has failed; this is a partial intestacy.

Question 2

What is the first step on the death of an interstate person?

Answer 2

Personal representatives must pay the funeral, testamentary and administrative expenses, debts and other liabilities of the deceased from cash and the other proceeds of the sale of assets.

Question 3

What is the spouse or civil partner of the deceased entitled to under the rules of intestacy if they leave issue?

Answer 3

• personal chattels
• the statutory legacy (prescribed sum of money) currently £322,00 but was £270,000
• one half of the residue absolutely

Question 4

Meaning of issue

Answer 4

children and grandchildren

Question 5

If the intestate leaves no issue and a spouse, what happens

Answer 5

They take the whole state absolutely

Question 6

How many days must the spouse survive after the death of their partner to be subject to the rules of intestacy

Answer 6

28 days

Question 7

If there is no surviving spouse, what is the order of entitlement

Answer 7

issues
parents - equally etc
brother and sisters of whole blood
siblings of half blood
grandparents - equally
uncles and aunts of whole blood
half blood uncles and aunts
the Crown as bona vacantia

Question 8

Earlier classes take the

Answer 8

Exclusion of later classes

lower classes are excluded by the upper class beneficiaries

Question 9

The statutory legacy - how does it work

Answer 9

take the 322,000 from the total amount of assets, give that to the spouse then divide the residue equally between the spouse and the issue

Question 10

What was the statutory legacy amount between 6 feb 2020 to 25 july 2023

Answer 10

£270,000

Question 11

What is the statutory legacy amount currently?

Answer 11

£322,000

Question 12

What does ‘statutory trusts’ mean?

Answer 12

In short: for classes (apart from parents and grandparents) if they die their issue will inherit the trust.

means that, for all classes other than parents and grandparents, a class
member’s issue takes their parent’s share per stirpes if the class member has predeceased
(provided the issue attain 18 or marry earlier). Per stirpes means “through the root” and this
term is used because children inherit through their parent’s share.

Question 13

Per stripes means

Answer 13

“through the root” and this
term is used because children inherit through their parent’s share.

Question 14

Adopted children and illegitimate children are treated as

Answer 14

children for the purposes of the intestacy rules
they will inherit as their child

Question 15

Property owned as a joint tenant, in contrast to tenants in common - will the property pass under the rules of intestacy?

Answer 15

passes outside of the intestacy rules
right of survivorship - passes to the partner who is left

However, if the property had been owned as tenants in common, it would pass via their will (their share in the property) or intestacy if there was no valid will

Question 16

Life trusts and life tenants - are they subject to the rules of intestacy?

Answer 16

No. Will pass according to the terms of the trust

Question 17

residuary of the estate is shared according to the

Answer 17

statutory rules

Question 18

If the intestate leaves no issue, how will the spouse take their estate?

Answer 18

Absolutely

Question 19

Some property cannot pass via the testator’s will or the rules of intestacy but will pass
outside the estate - what does this include?

Answer 19

o property owned as a beneficial joint tenant
o life assurance policies
o pension scheme death benefits
o nominated property
o life interests in trust property, and
o gifts where the donor has reserved a benefit.

Question 20

Inter vivos

Answer 20

In their lifetime