13.4: The intestacy rules Flashcards
When do the intestacy rules kick in?
The intestacy rules apply when someone dies having made no will or no valid will.
Governed by Section 46 of the Administration of Estates Act 1925.
What is a whole intestacy?
A whole intestacy occurs when the deceased had no valid will, so the whole estate passes via intestate succession.
What is an intestate?
The deceased person
What is a partial intestacy?
A partial intestacy occurs when the deceased’s will does not dispose of all or part of the residue because the gift of the residue – or part of it – fails.
The rules of intestacy therefore apply if the gift or part of the residue fails.
How is an estate distributed in a partial intestacy?
In a partial intestacy:
- The gifts in the will are distributed according to the will, but
- The residue passes according to the laws of intestacy.
What must the personal representatives do after the death of the intestate person?
Personal representatives must pay the funeral, testamentary and administrative expenses, debts and other liabilities of the deceased from cash and the proceeds of sale of assets.
What is the residuary estate?
The balance of the estate’s value after funeral, testamentary and administrative expenses, debts and other liabilities have been paid off.
The residuary estate is then shared among those entitled according to the intestacy rules
What are ‘issue’?
Issue = children including adopted and illegitimate children but not stepchildren
What are the intestacy rules where there is a spouse (surviving the deceased by at least 28 days) and:
There are no surviving issue of the deceased
Spouse + no surviving issue: Spouse inherits the whole estate
If the intestate leaves no issue, the spouse takes the whole estate absolutely (regardless of any other surviving relatives of the deceased).
What are the intestacy rules where there is a spouse (surviving the deceased by at least 28 days) and:
There are surviving issue present
Spouse + issue of the deceased:
Spouse is entitled to:
1) personal chattels – this is, tangible moveable property (things like cars, furniture, and so on)
2) a monetary sum of 322,000 pounds - statutory legacy (assuming the deceased had that much money), and
3) 50 percent of the remaining assets (the residue).
The deceased’s issue takes the other 50 percent of the residue. If they are minors, it will be held on trust for them until they reach 18.
If the deceased leaves issue (for example, children and/or grandchildren), the spouse takes personal chattels, the statutory legacy and one-half of the residue absolutely. The other half of the residue is held for the deceased’s issue absolutely.
What is the order of entitlement when the deceased dies with no spouse?
If there is no surviving spouse, there is a strict order of entitlement.
- Issue (children) of the intestate on statutory trusts
- Parents (equally if both alive)
- Siblings: Brothers and sisters of the whole blood (in other words, those who share the same parents as the deceased) on statutory trusts
- Siblings: Brothers and sisters of the half-blood (in other words, those who share one parent with the deceased)
- Grandparents (equally if more than one)
- Uncles and aunts of the whole blood on statutory trusts
- Uncles and aunts of the half blood on statutory trusts
- The Crown as bona vacantia
What is meant by ‘statutory trusts’?
For all classes other than parents and grandparents, a class member’s issue inherits through their parent’s share if the class member has predeceased. This is conditional on the issue reaching 18 years old or marrying earlier.
What is meant by ‘per stirpes’?
‘Through the root’ - term is used because children inherit through their parent’s share.
What are the principles relating to adopted and illegitimate children?
Adopted children are treated for intestacy as the children of their adopted parents and not of their natural parents. The intestacy rules apply regardless of whether or not an individual’s parents were married to each other.
