Intestacy

Question 1

How does the presence of a spouse or issue affect the intestacy rules?

Answer 1

If the deceased has been survived by a spouse or issue, they are the only class of relatives that need to be considered for entitlement.

Question 2

What does the term ‘issue’ refer to in the context of intestacy?

Answer 2

‘Issue’ refers to children and remoter linear descendants, such as grandchildren, including legitimate, illegitimate, legitimated, and adopted children.

Question 3

Explain the significance of the 28-day survival requirement for a spouse or civil partner.

Answer 3

A spouse or civil partner must survive the deceased by at least 28 days to be considered in the intestacy entitlement.

Question 4

How are children conceived but not yet born treated under intestacy rules?

Answer 4

Children who are conceived but not yet born at the date of death are included in the definition of ‘issue’.

Question 5

Discuss the implications for a spouse’s estate if they do not survive the intestate by 28 days.

Answer 5

The spouse cannot pass their interest to their own estate as they have no entitlement under the intestacy rules.

Question 6

Describe the entitlements of a spouse when the intestate leaves a spouse and issue.

Answer 6

The spouse is entitled to personal chattels absolutely, a statutory legacy of £322,000 free of tax and costs plus interest from the date of death to the date of payment, and one half of the residue absolutely.

Question 7

Define the term ‘substitution limb’ in the context of intestacy rules.

Answer 7

The ‘substitution limb’ allows the issue of a deceased beneficiary to inherit their entitlement if the beneficiary does not survive the deceased.

Question 8

Describe the requirements for an entitled beneficiary to inherit from a statutory trust.

Answer 8

Each entitled beneficiary must survive the intestate and reach the age of 18 in order to inherit.

Question 9

What type of interest does a beneficiary have until they reach the age of 18?

Answer 9

The beneficiary has a contingent interest until they reach the age of 18.

Question 10

How can a beneficiary’s issue inherit if the beneficiary dies before the intestate?

Answer 10

The beneficiary’s own issue can inherit in their place, provided they satisfy the contingency limb by reaching the age of 18.

Question 11

Define a vested interest in the context of statutory trusts.

Answer 11

A vested interest occurs when a beneficiary is already 18 or older when the intestate dies, allowing them to inherit absolutely and immediately.

Question 12

What happens if a beneficiary survives the intestate but dies before reaching the age of 18?

Answer 12

In this case, the beneficiary does not attain a vested interest and cannot inherit.

Question 13

Describe the order of entitlement to the succession estate if the intestate is not survived by a spouse or issue.

Answer 13

1. Parents
2. Siblings of whole blood
3. Siblings of half blood
4. Grandparents (PiSSGUT)
5. Uncles and aunts of whole blood
6. Uncles and aunts of half blood
7. The crown as bona vacantia.

Question 14

D dies intestate, leaving no spouse or issue. D is survived by brother, F. D’s

sister E died last year, leaving children, G(7) and H (18). Who gets the estate?

Answer 14

F gets half the eststeAs E predeceased D, the substitution limb applies. G and H take E’s half share equally

Question 15

What happens to the whole estate if the deceased had a surviving spouse and no issue?

Answer 15

The whole estate passes to the surviving spouse.

Question 16

Define ‘personal chattels’ according to s55 AEA 1925.

Answer 16

Personal chattels are defined as ‘tangible movable property’ but exclude money, property used mainly for business purposes, and property held solely as an investment.

Question 17

How can a surviving spouse appropriate the marital home after the death of their partner?

Answer 17

The surviving spouse may make an election to appropriate the home in full or partial satisfaction of their statutory entitlements, allowing them to effectively ‘buy’ the deceased’s share from the personal representatives using funds from the estate.

Question 18

Describe the election process for a surviving spouse or civil partner regarding the home after a death.

Answer 18

The surviving spouse or civil partner must make an election in writing to the personal representatives within 12 months of the date of the grant.

Question 19

Explain the restrictions on selling the home by personal representatives during the election period.

Answer 19

During the election period, the personal representatives cannot normally sell the home without the spouse’s consent.

Question 20

How is the value of the home determined for appropriation purposes?

Answer 20

The home is valued as at the date of appropriation, not the date of death.

Question 21

Identify situations where court consent is required for appropriation of the home.

Answer 21

Court consent is required if the home is only part of a building owned by the deceased or when the home is part of a farm or other business premises.

Question 22

Describe the types of property that do not form part of the succession estate.

Answer 22

The types of property that do not form part of the succession estate include donationes mortis causa, discretionary pension scheme benefits, insurance policies written in trust, statutory nominations, property held as beneficial joint tenants, and some other beneficial interests under trusts.

Question 23

Define donationes mortis causa in the context of succession estate.

Answer 23

Donationes mortis causa refers to gifts made in contemplation of death, which do not form part of the succession estate.

Question 24

List some types of beneficial interests that may not pass to the succession estate.

Answer 24

Some beneficial interests that may not pass to the succession estate include property held in a trust and certain other beneficial interests under trusts.

Question 25

Describe the first requirement for a valid DMC.

Answer 25

The first requirement is that the gift is made because the donor believes they may die imminently of a particular cause.

Question 26

What is the second requirement for a valid DMC?

Answer 26

The second requirement is that the donor makes it clear that the gift is conditional upon them dying, and that the property reverts to them if they survive.

Question 27

Explain the third requirement for a valid DMC.

Answer 27

The third requirement is that the donor either parts with the property or something representing ownership of it.

Question 28

How does a DMC affect the donor’s succession estate?

Answer 28

A valid DMC means that the property does not form part of the donor’s succession estate as it has already been validly disposed of.

Question 29

Describe the impact of a simple life insurance policy on the succession estate.

Answer 29

The proceeds of a simple life insurance policy pass to the succession estate.

Question 30

How do insurance policies written in trust affect the succession estate?

Answer 30

If the benefit of the policy is written in trust for another person, the proceeds will not form part of the succession estate.

Question 31

Identify the key document required to release benefits from a life insurance policy.

Answer 31

A death certificate is required to release benefits from a life insurance policy.

Question 32

Describe the types of accounts where a person can make a statutory nomination which will be excluded from succession estate.

Answer 32

Friendly Society, Industrial Society, and Provident Society accounts.

Question 33

What is the maximum amount that can be nominated in these accounts?

Answer 33

The amount nominated cannot exceed £5,000.

Question 34

Explain what happens to the monies in the nominated account upon the death of the deceased.

Answer 34

Upon the death of the deceased, the monies in the relevant account(s) pass to the nominee rather than under the will or intestacy of the deceased.

Question 35

How is the benefit of the nominated account released to the nominee?

Answer 35

The benefit of the nominated account will be released upon the production of a death certificate.

Question 36

How does the property of a beneficial tenant in common pass after death?

Answer 36

The share will pass into the succession estate.

Question 37

Describe the treatment of assets held in a trust when identifying a deceased person’s succession estate.

Answer 37

Assets held in a trust are not usually included in the deceased person’s succession estate because they are distributed according to the trust deed, not the will or intestacy rules.

Question 38

Explain the exception regarding the distribution of trust assets when a deceased exercises a power of appointment.

Answer 38

If a deceased exercises a power of appointment in their will regarding trust assets, they can determine the distribution of the trust fund.

Question 39

If the deceased is the life tenant of a trust, does this form part of the succession estate

Answer 39

No

Question 40

If the deceased is the remainder man, does this form part of the succession estate

Answer 40

Yes, provided the remainder interest is vested ‘in interest’ i.e. the

remainder interest is not contingent on the remainderman outliving the life tenant.