Intestacy

Question 1

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

Answer 1

-DMCs

-Discretionary pension scheme benefits

-Insurance policies written in trust

-Statutory nominations up to £5,000

-Property held as beneficial joint tenants (survivorship applies)

Question 2

What are issue?

Answer 2

Children and remoter linear descendants e.g. grandchildren, legitimate, illegitimate, legitimated, adopted children and conceived children

Question 3

If the intestate leaves a spouse but no issue, who inherits the estate?

Answer 3

The spouse inherits the entire succession estate absolutely.

Question 4

If the intestate leaves issue but no spouse, who inherits the estate?

Answer 4

The issue inherit the entire succession estate on the statutory trusts.

Question 5

If the intestate leaves both spouse and issue, how are the entitlements split?

Answer 5

Spouse-personal chattels absolutely, statutory legacy of £322,000 free of tax and costs plus interest from date of death to date of payment, one half of the residue absolutely

Issue-other half of the residue on the statutory trusts

Question 6

What is a spouse’s entitlement dependent on?

Answer 6

If the spouse does not survive by 28 days, the rules apply as if the deceased was not survived by their spouse.

Question 7

What is the contingency limb?

Answer 7

Each entitled beneficiary must survive the intestate and reach the age of 18 in order to inherit. Until this requirement is satisfied, the beneficiary has a contingent interest.

Question 8

What is the substitution limb?

Answer 8

If an entitled beneficiary dies before the intestate that beneficiary’s own issue can inherit in their place, provided the beneficiary’s issue themselves satisfy the contingency limb (reach the age of 18).

Question 9

What is the statutory order of entitlement under S49 AEA 1925?

Answer 9

1. Parents
2. Siblings of whole blood (share both parents) on the statutory trusts
3. Siblings of half blood (share one parent) on the statutory trusts
4. Grandparents
5. Uncles and aunts of whole blood on the statutory trusts
6. Uncles and aunts of half blood on the statutory trusts
7. The crown as bona vacantia

Where there is more than one person in the relevant category, the succession estate is divided equally.

Question 10

What is the statutory definition of personal chattels under S55 AEA 1925?

Answer 10

The statutory definition of ‘personal chattels’ in s55 AEA 1925 means tangible movable property but excludes the following:

1. Money or securities for money
2. Property used by the intestate at their death solely or mainly for business purposes
3. Property held at the death of the intestate solely as an investment