Distributing property in intestacy sit. - Intestacy rules

Question 1

2 types of intestacy

Answer 1

no valid will = TOTAL intestacy

will fails to dispose of entire estate = PARTIAL intestacy, occurs when gift of residuary legacy fails

Question 2

What is the effect of the intestacy rules

Answer 2

Trust imposed over all property that can be left in will, held by PRs who pay debts etc then share assets via IR.

Question 3

What piece of legislation gives us the IR

Answer 3

s46 Administration of Estates Act 1925

Question 4

Key case for spouses/divorce and intestacy

Answer 4

Re Seaford [1968] - estranged couple living separately. Divorce finalised at 10am, husband found dead in bed after ODing, estimated that he died at 4am. Applying the rules, the divorce wasn’t finalised until 6 hours after death, so wife was entitled to his estate. Thus, spouse only excluded when divorce is finalised.

Question 5

Structure for distributing property in intestacy situation (4 steps)

Answer 5

1) Identify property passing outside of the intestacy
2) identify assets passing under the intestacy - trust here under IR
3) pay off debts & funeral expenses
4) distribute according to the IR (3 situations)

Question 6

IR Situation 1 - Surviving spouse & NO issue

Answer 6

if spouse survives 28 days, whole estate goes to them. other relatives have no entitlement.

Question 7

IR situation 2 - surviving spouse AND issue

Answer 7

Spouse (if survive 28 days) gets:
all personal chattels (tangible movable property, statutory legacy of 270k (entire sum if less left), and 1 half of remaining estate (if anything

Issue gets: one half of estate on the statutory trusts

Question 8

Rules for statutory trusts (fund shared equally between kids of intestate)

Answer 8

18+/under 18 but married = VESTED interest, get their share now
under 18 = CONTINGENT interest, no p until 18

Question 9

what happens if a child of the intestate has died in intestacy situations?

Answer 9

their share passes to THEIR issue (child of the child)

Question 10

Intestacy situations - when does the family home pass to spouse?

Answer 10

• if beneficial joint tenant passes outside intestacy
• if deceased was sole owner or tenant in common, through IR - BUT if spouse living in property, can require PRs to transfer family home to them. If value covered by inheritance, entitlement partially satisfied, if not, can pay difference in ‘equality money’ to get it - D’s issue get other half of residue absolutely.

Question 11

IR Situation 3 - no surviving spouse/CP

Answer 11

First one identified in this order:

• issue of intestate (on statutory trusts)
• parents(equally if both alive)
• siblings (on STs)
• half siblings (on STs)
• grandparents (equally if more than 1)
• uncles & aunts on STs
• half uncles & aunts on STs
• Crown

Question 12

What property passes