Intestacy

Question 1

When does intestacy apply?

Answer 1

No valid will (whole intestacy)

A part of the property is not properly handled because a gift of some or all of the residue fails

Question 2

When is the spouse entitled to the whole estate?

Answer 2

survive the spouse for 28 days and when there is no dispute

Question 3

What does the spouse take when there is issue?

Answer 3

Personal chattels

$270,000

1/2 of the residue

Question 4

Order of entitlement if there is no surviving spouse

Answer 4

• Parents (equally if both alive);
• Brothers and sisters of the whole blood (that is, those who share the same parents as the deceased) on statutory trusts;
• Brothers and sisters of the half blood (that is, those who share only one parent with the deceased) on statutory trusts;
• Grandparents (equally if more than one);
• Uncles and aunts of the whole blood on statutory trusts;
• Uncles and aunts of the half blood on statutory trusts; and
• The Crown as ‘bona vacantia’.

Question 5

Simon dies without a valid will. He was divorced. He had three children: Amy, Bob, and Claire. Amy and Bob survived Simon, but Claire had died three years before. She had two children of her own, Diana and Eva.

Who gets what shares?

Answer 5

• One-third each to Amy and Bob; and
• One-sixth each to Diana and Eva (that is, they inherit Claire’s share equally between them as her issue).

Question 6

Sachin died in a car accident. He was intestate and unmarried. He had three children: Samira (25), Dillip (21), and Anjali (17). Unfortunately, Anjali was involved in the accident and, although she survived it, she died two weeks later, before reaching age 18.

who gets what?

Answer 6

Anjali was not 18 therefore she did not gain vested interest and her siblings will inherit estate equally

Question 7

Adopted people in intestacy

Answer 7

Adopted children are treated as the children of their adoptive parents

if they die without spouse or issue, their estate will be distributed with the closest adoptive relative

Question 8

What happens in this situation?

Fred died recently. He owned several assets, including his interest in the house he co-owned with his wife, Wilma. They owned the property as joint tenants.

Answer 8

Fred’s interest in the property does not pass via his will but instead passes to Wilma by the right of survivorship.

Question 9

Life assurance policies

Answer 9

Life assurance polices are held on trust for, or assigned to, beneficiaries.

The proceeds will not form part of the deceased’s taxable estate for inheritance tax purposes.