2. Intestacy, and Property Passing Outside the Will or Intestacy Flashcards
In what two situations will the rules of intestacy apply?
- Deceased died without making a will, or at least a valid will
- Deceased’s will does not dispose of all of their property
For a spouse to receive their beneficial entitlement, for how long must they survive the deceased?
28 days
What is the spouse’s entitlement where there are no issue, i.e. children?
The entire estate
What are the spouse’s three entitlements where there are issue?
- Personal chattels
- £322,000
- Half the residue absolutely
What is a spouse with issue’s other option with regard to the matrimonial home?
They can opt to take the matrimonial home (or deceased’s interest in it if they were tenants in common) in satisfaction their entitlement to the three things in the previous card (chattels, 322k, half the residue), and the children will take the residue (after IHT)
If the property is worth more than the entitlement, the spouse must pay this equality money to the estate out of their own pocket
What is the list of eight beneficiaries who will take intestate property if there is no spouse, and how is this dealt with?
As soon as a beneficiary falling a category in the below list is identified, subsequent beneficiaries are ignored:
- Issue of the intestate on statutory trusts
- Parents (equally if both alive)
- Full brothers or sisters on statutory trusts
- Half brothers and sisters on statutory trusts
- Grandparents (equally if both alive)
- Full uncles and aunts on statutory trusts
- Half uncles and aunts on statutory trusts
- The Crown as bona vacantia
How will members of a class of beneficiaries take their share, and what are the two conditions, one of which is required?
They will take their shares equally, as long as they:
- Reach 18, or
- Marry before 18
What does on statutory trusts mean?
It means that all classes, except for parents and grantparents, take the parent’s share per stirpes, i.e. through the root, assuming the parent’s share
What happens if a potential beneficiary (i.e. a beneficiary with a contingent interest) who was living at the intestate’s death, dies before their interest vests?
Their issue take the deceased parent’s share
What happens if a potential beneficiary (i.e. a beneficiary with a contingent interest) who was living at the intestate’s death, dies before their interest vests, but they have no issue?
The estate will be administered as if that beneficiary has never existed
For the purposes of intestacy, who are deemed to be an adopted child’s parents?
The adoptive parents. Not the natural parents.
Although the intestacy rules apply whether or not an individual’s parents were married, what does the law presume if a person dies intestate and their parents were never married?
The law presumes that the father has predeceased the intestate child, unless there is evidence to the contrary or the father is on the birth certificate
In an intestacy situation, what are the six categories of property that do not form part of the deceased’s succession estate and are therefore not payable to personal representatives?
- Property owned as beneficial joint tenant
- Life assurance policies
- Some pension scheme death benefits
- Nominated property in savings schemes
- Life interests in trust property
- Gifts where donor has received a benefit
Why does property owned as a beneficial joint tenant not pass under intestacy and to whom does it pass?
It passes to the other joint tenant automatically under the right of survivorship
Note that this obviously does not apply to tenancies in common, and may be the subject of a wrong answer choice
Why do life assurance policies not pass under intestacy?
Life assurance policies are held on trust for or assigned to beneficiaries of the policy
