Distribution of Estates and Intestacy

Question 1

What do testacy, intestacy and partial intestacy mean?

Answer 1

Testacy: The deceased’s will covers their entire succession estate. Intestacy : Died without making a will. Partial Intestacy: Will does not cover the entire estate.

Question 2

What are the main types of property that will not pass to the succession estate?

Answer 2

DMCs; Discretionary pension scheme benefits; Insurance policies written in trust; Statutory nominations; Property held as beneficial joint tenants; some other beneficial interests under trusts and property held in a trust.

Question 3

Entitlement to the estate: Survived by a spouse or civil partner.

Answer 3

If the spouse survives the deceased by at least 28 days, they will inherit entire succession estate minus that residue that goes to the issue.

Question 4

What is the intestate leaves issue but no spouse?

Answer 4

The issue inherits the entire succession estate on the statutory trusts. Needn’t survive by 28 days.

Question 5

What if the intestate dies with a spouse but no issue?

Answer 5

Spouse inherits entire succession estate absolutely. Must survive by 28 days.

Question 6

What if the intestate leaves spouse and issue?

Answer 6

Spouse gets personal chattels absolutely, statutory legacy of £322,000 free of tax and costs plus interest from the date of death to the date on which the payment is made, and half the residue.

Issue gets the other half of the residue on statutory trusts.

Question 7

For issue inheriting on statutory trusts, but they die before the intestate, what happens?

Answer 7

The issue’s issue can inherit in their place, provided the beneficiary’s issue themselves satisfy the contingency limb (they reach the age of 18). “Substitution limb”.

Question 8

For issue inheriting on statutory trust, what is the contingency limb?

Answer 8

Each entitled beneficiary must survive the intestate and reach the age of 18 to inherit. Until this requirement is satisfied, the beneficiary has a contingent interest. If they are 18 they will inherit absolutely and immediately.

Question 9

What is the order of entitlement if the intestate dies without leaving a spouse/ civil partner, or issue?

Answer 9

1. Parents.
2. Whole blood siblings.
3. Half Blood Siblings.
4. Grandparents.
5. Uncles and aunts of whole blood.
6. Unless and aunts of half blood.
7. Crown as bona vacantia.

Question 10

What property does ‘personal chattels’ mean s 55 AEA?

Answer 10

Tangible movable property excluding …Money or securities for money; Property used by the intestate at their death solely for business purposes, and property held on the death of the estate solely as an investment.

Question 11

If a surving spouse does not get the deceased’s share of the marital home, what can they do (assume not joint tenants)?

Answer 11

They can elect to ‘buy’ the deceased’s share of the home, must make this election in writing to the PRs within 12 months of the date of the grant. During that time, the PRs can not usually sell the home without the spouses consent.

Where their entitlement under the intestacy rules is lower than the value they are appropriating (eg where the home is the only or main asset of the estate) the spouse/civil partner must pay the difference from their personal funds. The home is valued as at the date of appropriation not the date of death.
There are some restrictions on the right to appropriate. The consent of the court is required where the home is only part of a building owned by the deceased or when the home is part of a farm or other business premises.

Question 12

A man died without a will two weeks ago. He was unmarried but has a child who is now 18. His child’s mother is now married and her husband adopted the child several years ago. The man had no further involvement with his child. The man’s mother is still alive and the man is also survived by his sister-in-law. He has no other relatives.

Who is entitled to the man’s estate under the intestacy rules?

a) His child.
b) His mother.

c) His mother and his sister—in-law.

d) The mother of the man’s child as life tenant of his estate, with the child as remainderman.

e) The estate goes to the Crown as the man has no legal descendants.

Answer 12

B: In the absence of a spouse and children (once adopted, the child is no longer a relation of their biological father), the man’s mother inherits under the intestacy rules.

Question 13

A woman has died without a valid will. She is survived by her husband, who had not been living with her for some years at the time of her death although they have never formally separated, and her two children aged 15 and 20.

Which of the following correctly states the most appropriate applicants for a grant of representation in this situation?

a) Only her adult child may apply for a grant of letters of administration as she was separated from her husband. incorrect

b) Her spouse and adult child may apply for a grant of letters of administration. correct

c) Both her children may apply for a grant of letters of administration jointly as one of them is over 18. incorrect

d) The woman’s husband and both children may apply for the grant of letters of administration. incorrect

e) As the woman was not divorced, only her husband may make an application for a grant of letters of administration. incorrect

Answer 13

B - There is nothing to suggest that the marriage has been dissolved at the time of death. The woman’s husband and her adult child would both be entitled to make an application.

Question 14

A man has died intestate, leaving a spouse and minor children.

Which of the following correctly states how the statutory trusts will operate in this case?

a) The surviving spouse will have a life interest in his estate, with the children inheriting after her death.

b) The surviving spouse will have a life interest in half the estate, with the other half being held on trust for the children.

c) The surviving spouse is entitled to up to half the estate absolutely, although this is capped. They are also entitled to a life interest in the remaining half which passes to the children on their death.

d) The surviving spouse is entitled to a fixed sum and half of the rest of the estate. The other half is held on trust for the children.

e) The estate is held upon trust for the surviving spouse and the children and may be brought to an end and distributed in equal shares when the youngest child is 18.

Answer 14

D: Depending on the size of the estate, the surviving spouse will receive the fixed sum plus half the remainder. If the estate is not sufficient to cover the fixed sum or is equal to it, the surviving spouse will inherit the entire estate.

Question 15

A woman and her husband were involved in a car accident which killed the man at the time of the accident. The woman survived her husband but died after 21 days. Both their two children were unhurt. The woman left a will but her husband did not.

Which of the following correctly states the position with regard to the man’s estate?

a) The man’s estate passes to the children.

b) The man’s estate passes to his wife and children under the intestacy rules.

c) The man’s estate passes under his wife’s will as she survived him.

d) The man’s estate passes to his parents.

e) The man’s estate passes to his children but only after his wife’s estate is finalised.

Answer 15

A - The man died intestate and his wife did not survive him by the required 28-day period. His estate will therefore pass to his children under the intestacy rules.

Question 16

A will contains a clause which states ‘one half each of the residue of my estate to each of my children’. Only one of the testator’s two children survives him and neither child has issue. There is no substitutionary gift of residue and the testator’s spouse has predeceased.

Which of the following correctly states the position with regard to the residue of the estate?

a) The residue will pass under the intestacy rules with the surviving child inheriting the whole of the estate. incorrect

b) Half of the residue will pass to the surviving child, half to the parents of the testator under the intestacy rules. incorrect

c) Half of the residue will pass to the surviving child, with the other half passing under the will of the child who has predeceased. incorrect

d) The whole of the residue will pass to the survivor of the two children under the will. incorrect

e) The testator’s surviving child will inherit the whole of the residue of the estate; one half under the will and the other under the intestacy rules. correct

Answer 16

E- The wording of the will and the lack of a substitutionary gift mean that there is a partial intestacy. The surviving child will inherit their half share under the will, but the other half will pass under the intestacy rules. As the surviving child is the only issue and the spouse has predeceased, they will inherit the other half of the estate.

Question 17

A man and his wife have died in a car accident. The man was aged 45, his wife was 46. They have no children and left everything to each other in their wills. The man’s will made a substitutional gift to his niece if his wife did not survive him. The wife’s will made no substitutional gift if her husband did not survive her. Neither will contains a 28-day survivorship clause.

Which of the following correctly describes how the estates will be distributed?

a) The husband’s niece will inherit both estates under the substitutional provisions of the husband’s will. correct

b) The husband’s estate will pass to his wife, whose estate will pass under the intestacy rules. incorrect

c) The husband’s estate will pass to his niece, the wife’s under the intestacy rules. incorrect

d) Both estates will pass under the intestacy rules as neither spouse survives the other by 28 days. incorrect

e) The wife’s will is invalid and her estate passes to her husband on intestacy. His estate passes to his niece. incorrect

Answer 17

A - Where two persons die in circumstances where it is not possible to tell who died first, the younger is deemed to survive the older. As the husband is younger, he is deemed to have survived his wife and he inherits her estate, which passes under his will. The intestacy rules mean that there is a survivorship period of 28 days but, unless this is specified in a will, it does not automatically apply.

Question 18

A client has died leaving a home-made will which makes a number of gifts, but does not have a clause relating to his house, which he purchased in his sole name. There is no residuary estate clause, but the will was properly executed.

Which of the following correctly states the position with regard to the deceased’s estate?

a) This is an intestacy as the will does not dispose of the entire estate, although the gifts of personal property will be valid.

b) This is a partial intestacy as the will does not dispose of the entire estate.

c) This is an intestacy as the will is invalid because it does not include a residuary clause.

d) This is not an intestacy, and the beneficiaries under the will share the residue under a deemed residuary clause.

e) This is an intestacy, but an application to the court will be required to determine entitlement to the property.

Answer 18

B

Question 19

A client has died leaving no valid will. She was a single parent who cared for her adopted daughter, and her stepdaughter, whom she had not adopted. She also had a niece, the child of her late brother-in-law. She has no other relatives.

Which of the following correctly states the entitlement of the woman’s relatives under the intestacy rules?

a) The woman’s adopted daughter and her niece are entitled.

b) The woman’s adopted daughter, her niece and her stepdaughter are all entitled.

c) None of the potential beneficiaries are entitled as none are related by blood.

d) The woman’s adopted daughter and stepdaughter are entitled to share equally in the estate.

e) The adopted daughter only.

Answer 19

E

Question 20

A divorced woman has died without a valid will, leaving no issue. She is an only child, and her parents have predeceased. Her former husband survives her, as does her stepdaughter, with whom she still has a good relationship. Her only living relatives are her father’s sister (aunt), and his half-brother (uncle).

Which of the following correctly states who is entitled to the woman’s estate?

a) The woman’s stepdaughter as her issue.

b) The woman’s stepdaughter, her aunt, and her uncle.

c) The woman’s aunt and her uncle

d) The woman’s aunt only.

e) The woman’s former husband and her stepdaughter.

Answer 20

D

Question 21

A man has died with no valid will, unmarried and without issue. The man is survived by all four of his grandparents, but his parents, who were never married, have predeceased. The man’s father was not named on the man’s birth certificate.

Which of the following correctly states who is entitled to the man’s estate?

a) All four of the man’s grandparents in equal shares.

b) None of man’s grandparents have any entitlement.

c) The man’s paternal grandparents are entitled in equal shares

d) The man’s maternal grandparents in equal shares.

e) The man’s maternal grandmother is entitled to the estate.

Answer 21

D