Intestacy

Question 1

Property passing under intestacy

Answer 1

1. Governed by rules in Part VI Administration of Estates Act (AEA) 1925
   a) deceased has died totally intestate- whole estate will pass under intestacy rules
   b) partially intestate- will failed to deal with all the estate

Question 2

S33(1) AEA 1925

Answer 2

1. Provided that the PRs hold the intestate’s estate not disposed of by a will on trust with a power to sell
2. They must pay funeral testamentary and administration expenses, debts and other liabilities from the estate
3. The residuary estate is then to be shared amongst those entitled according to the intestacy rules S46 AEA

Question 3

Entitlement

Answer 3

1. Surviving spouse/ civil partner- may take the whole intestate’s estate
2. If not then the rules set out the order of entitlement depending on categories of blood relatives
3. Generally, children of a pre-deceasing relative take their parent’s share

Question 4

Statutory Trusts

Answer 4

S47 AEA 1925 defined as “equally for all members of a class living or conceived at the date of the intestate’s death who attain 18 or marry under that age.”

1. Issue of any class member who pre-deceased take an equal share of their parents
2. Where a potential beneficiary is living at the date of intestate’s death but dies before attaining a vested interest (reaching 18 or prior marriage/ civil partnership) they will be treated as having predeceased

Question 5

Entitlement where there is a surviving spouse/ civil partner

Answer 5

1. Must survive the intestate by 28 days
2. No entitlement under the intestacy rules for a divorced or judicially separated spouse
3. A cohabitee has no rights
4. Entitlement of the spouse will depend on whether deceased issue also survive

Question 6

Entitle to spouse/ civil partner alone

Answer 6

1. Where there are no issue, the PRs hold the whole of the residuary estate for the surviving spouse absolutely
2. Must survive 28 days to take

Question 7

Spouse and issue

Answer 7

The spouse is entitled to:

1. Personal chattels absolutely
2. Statutory legacy of £270,000 free of tax and costs, plus interest from the date of death u til payment
3. The residue is split in half
4. If anything remains, the spouse/ civil partner will take half the residue absolutely
5. The issue are entitled to the other half of the residuary estate on the statutory trusts

Question 8

Personal chattels

Answer 8

1. Defined by S55(1)(x) of AEA 1925 - tangible moveable property other than such property which-
   a) consists of money or securities for money
   b) was used at the death of the intestate solely or mainly for business purposes
   c) was held at the death of the intestate solely as an investment

Question 9

Appropriation of the matrimonial home

Answer 9

1. Not necessary where the property was owned as beneficial joint tenants
2. Surviving spouse or civil partner can require the PRs to appropriate the matrimonial home in settlement of an absolute interest in the estate (can pay for the share that isn’t theirs)
3. Election must be made within 12 months of the grant of representation

Question 10

Issue of the intestate

Answer 10

1. Subject to the entitlement of the surviving spouse
2. Where a child pre-deceases the intestate leaving issue the issue will take their parents share
3. An adopted child is treated as the legitimate child of the adoptive parents
4. Illegitimacy is ignored

Question 11

Bona vacantia

Answer 11

1. If the estate passes bono vacantia the Crown has the discretion to provide for dependants of the intestate
2. Or for other persons who, the intestate might reasonably have been expected to make provision
3. Rare for an estate to truly be bona vacantia