Basics of Wills and Admin of Estates

Question 1

What is all of the property owned by a person at the point of their death known as?

Answer 1

their estate

Question 2

Does jointly owned property form part of an individuals estate?

Answer 2

no

Question 3

Can property that doesn’t form part of the estate be collected through grant of representation?

Answer 3

yes

Question 4

Which property is not included in the estate and can be collected without a grant of representation?

Answer 4

• jointly owned property
• insurance policies written in trust
• discretionary pension schemes
• statutory nominations
• trust property

Question 5

Where the deceased held the property as one of two or more joint tenants, does their property form part of the estate or does it pass directly to the other joint tenants

Answer 5

it passes directly to the other joint tenants under the survivorship rule

Question 5

is there deemed to be a severance of the joint tenancy immediately prio to death?

Answer 5

yes

Question 6

Where the deceased held the property as one of two or more tenants in common - does their share form part of the estate for distribution purposes?

Answer 6

yes it does

Question 7

trust property will usually pass in accordance with the provisions of the trust unless it’s an ‘interest in remainder’ - if this is the case, how will the will pass?

Answer 7

it may then pass under the terms of the will

Question 8

any debts or other liabilities must be identified - these must be met out of the estate before or after the remaining assets (net estate) are distributed?

Answer 8

before

Question 9

what is meant if the estate is insolvent?

Answer 9

the debts outweigh the assets

Question 10

where the estate is insolvent, the debt must be paid in a defined order - true or false

Answer 10

true

Question 11

When must an accurate valuation of all of the assets take place?

Answer 11

this must be obtained at the date of the death
these valuations often require expert advice - a schedule of assets and liabilities can then be produced

Question 12

How the estate is distributed will depend on what?

Answer 12

whether or not the deceased left a will and whether that will cover all or only some of the estate

Question 13

Testate - there’s a will disposing of all of the deceaseds property - how is the property distributed?

Answer 13

it is distributed according to the will

Question 14

Totally intestate - there is no will - how is the property distributed?

Answer 14

all property is distributed according to the intestacy rules in the AEA

Question 15

Partially intestate - there’s a will which doesn’t dispose of all of the deceased’s property - how is the property distirbuted?

Answer 15

the will is followed as far as possible - any remaining property is distributed according to the intestacy rules