Intestacy

Question 1

When do the intestacy rules apply?

Answer 1

When someone dies without a will

Question 2

In what 3 situations does the intestacy rules operate?

Answer 2

1. When there is no will either because the deceased never made one or all wills have been successfully revoked
2. Where there is a will, but it is nvalid
3. Where there is a valid will, but it fails to dispose of all of the deceased’s estate ( partial intestacy)

Question 3

What is the statutory trust?

Answer 3

The intestacy rule imposes a trust over all the property when a person dies intestate

The property is held in trust by the PRs

Question 4

What does the statutory trust provide?

Answer 4

All PRs must pay the funeral, testamentary, administration expenses and debts of the deceased

Question 5

How will an estate be distributed if there is a surviving spouse or cp under the intestacy rules?

Answer 5

They will receive

• all personal chatttels (tanginble only)
• Statutory legacy (£270,000)
• The rest of the residuary estate is divided in half (one half is held on trust for spouse/cp and the other half is held for the issue on the statutory trusts)

Question 6

What is the meaning of ‘issue’ for statutory trusts?

Answer 6

Includes all direct descendants of the deceased i.e, children, grandchildren, great-grandchildren, adopted children

Question 7

What is the condition for a spouse/cp to inherit under the intestacy rules?

Answer 7

The interstates spouse/cp must survive the interstate for 28 days to inherit

If they die within 28 days the estate is distributed as if their spouse/cp has not survived the interstate

Question 8

Who gets the family home if it doesn’t pass through survivorship?

Answer 8

The house goes into the residuary estate and the surviving spouse/cp can require the PRs to appropriate the family home in full or partial satisfaction of their interest in the estate (but they must be living in it to exercise this right and notify the PRs within 12 months of grant of rep)

Question 9

How does the statutory trust class the beneficiaries?

Answer 9

1. Living children of deceased (interests are contingent upon reaching 18)
2. If a child is dead, any children of the deceased child (living grandchildren) take their parents share equally (upon turning 18)

Question 10

How is an estate distributed when there is a surviving spouse/cp but no issue?

Answer 10

In this case, there is no children, grandchildren, adopted children etc

The surviving spouse/cp gets everything

Parents, brothers, sisters, grandparents and cousins get nothing

Question 11

How is the residuary estate distributed where there is no surviving spouse or cp?

Answer 11

The estate is divided between the interstate’s relatives in the highest category

1. Issue on statutory trust (but if none)
2. Parents, equally (but if none)
3. whole blood brothers and sisters (but if none)
4. Half-blood brothers and sisters (but if none)
5. grandparents equally (but if none)
6. Whole blood Uncles and aunts (but if none)
7. half Blood uncles and aunts (but if none)
8. The crown

If anyone falls in the first category they recive everything and those next recive nothing