Intestacy

Question 1

What is a personal representative?

Answer 1

A personal representative is an individual who administers the estate of a deceased person.

This includes handling the distribution of assets and settling debts.

Question 2

What are the intestacy rules?

Answer 2

The intestacy rules determine who is entitled to a deceased person’s property when they die without a valid will.

These rules apply under the Administration of Estates Act 1925.

Question 3

What happens if a person dies intestate?

Answer 3

If a person dies intestate, their property may be distributed according to intestacy rules, which apply only to property capable of being left by will.

Question 4

What is an example of intestacy?

Answer 4

Laura dies intestate, survived by her husband and children. Her house and life policy do not pass under intestacy rules, only her investments do.

This is because the house passes to Michael by survivorship and the life policy is in trust for the children.

Question 5

What changes did the Inheritance and Trustees’ Powers Act 2014 make?

Answer 5

The Act made significant changes to the entitlement of surviving spouses and civil partners on intestacy for deaths occurring on or after 1 October 2014.

Question 6

What is the statutory trust for payment of debts?

Answer 6

The intestacy rules impose a trust over all property of a deceased person who died intestate, requiring the personal representatives to pay debts and expenses before distributing the residuary estate.

Question 7

What is a residuary estate?

Answer 7

The residuary estate is the balance of the estate remaining after paying debts and setting aside funds for any legacies left in a will.

Question 8

Who qualifies as a spouse under intestacy rules?

Answer 8

A spouse is the person to whom the deceased was married at their death, regardless of cohabitation. Same-sex spouses have equal rights.

Former spouses are excluded once a decree absolute is obtained.

Question 9

Do cohabitees have rights under intestacy rules?

Answer 9

No, cohabitees have no rights under the intestacy rules.

Question 10

How are civil partners treated in relation to spouses?

Answer 10

Civil partners are treated in the same way as spouses.

Question 11

What is the statutory legacy for a spouse or civil partner?

Answer 11

The statutory legacy was £250,000 but was increased to £270,000 for deaths on or after 6 February 2020 and to £322,000 for deaths after 26 July 2023.

Question 12

What must occur for the intestate’s spouse or civil partner to inherit?

Answer 12

The intestate’s spouse or civil partner must survive the intestate for 28 days.

Question 13

What happens if the intestate’s spouse or civil partner dies within 28 days?

Answer 13

The estate is distributed as if the spouse or civil partner has not survived the intestate.

Question 14

Who are the primary beneficiaries under the statutory trusts?

Answer 14

The primary beneficiaries are the children of the intestate who are living at the intestate’s death.

Question 15

What is the condition for children to take a vested interest?

Answer 15

Children’s interests are contingent upon attaining the age of 18 or marrying or forming a civil partnership under that age.

Question 16

What happens if a child of the intestate predeceases them?

Answer 16

Children of the deceased child (grandchildren) take their deceased parent’s share equally, contingent upon attaining 18 or earlier marriage or formation of a civil partnership.

Question 17

What is a ‘per stirpes’ distribution?

Answer 17

This form of substitution and division allows grandchildren to inherit their deceased parent’s share.

Question 18

What occurs if children or issue die without attaining a vested interest?

Answer 18

The estate is distributed as if they had never existed.

Question 19

What does the Estates of Deceased Persons (Forfeiture Rule and Law of Succession) Act 2011 provide?

Answer 19

It provides that if issue die without attaining a vested interest, the estate is distributed as if they had never existed.

Question 20

What is the minimum age to inherit under intestacy rules?

Answer 20

The minimum age to inherit is 18 years old.

Question 21

What happens to a spouse’s share if they die within 28 days of the intestate?

Answer 21

If the spouse or civil partner dies within 28 days, the estate is distributed as if they had not survived the intestate.

Question 22

How is the estate distributed if there is no surviving spouse or civil partner?

Answer 22

The residuary estate is divided among relatives in the highest category, starting with issue, then parents, and so on.

Question 23

What are the statutory trusts?

Answer 23

Statutory trusts require that members of a specified class share the estate equally, with children under 18 taking a contingent interest.

Question 24

What happens if a child with a contingent interest dies before reaching 18?

Answer 24

If such a child dies before reaching 18 or marrying, their share passes to their illegitimate child if they have one.

Question 25

How are adopted children treated under intestacy rules?

Answer 25

Adopted children are treated as the children of their adoptive parents, not their natural parents.

Question 26

What presumption exists regarding the father of a child whose parents were not married?

Answer 26

It is presumed that the individual has not been survived by their father unless proven otherwise.

Question 27

What does the Human Fertilisation and Embryology Act 2008 allow?

Answer 27

It allows for a child to have a second female parent in certain circumstances.

Question 28

What happens to a child’s contingent interest if they are adopted?

Answer 28

If a child with a contingent interest is adopted, they cease to be entitled to share in the estates of their birth parents.