Intestacy Flashcards
Who holds the undisposed property of an intestate person?
The personal representatives hold the property on trust with the power to sell under Section 33 of the Administration of Estates Act 1925.
How is entitlement on intestacy determined?
Entitlement is based on which relatives survive the deceased, following a statutory order of entitlement.
What happens if the deceased is survived by a spouse or civil partner?
If the deceased is survived by a spouse or civil partner (who lives for at least 28 days after the deceased), they are the only relatives that need to be considered.
What happens if the deceased leaves no spouse or issue?
A wider class of relatives must be considered for inheritance.
What is meant by ‘issue’?
‘Issue’ refers to children and direct descendants, including:
• Legitimate children
• Illegitimate children
• Legitimated children
• Adopted children
• Children conceived but not yet born at the time of death.
What happens if the intestate leaves a spouse but no issue?
The spouse inherits the entire succession estate absolutely.
What happens if the intestate leaves issue but no spouse?
The issue inherit the entire succession estate under statutory trusts.
What happens if the intestate leaves both a spouse and issue?
The spouse and issue share the estate, and the entitlement depends on the nature and value of the assets.
What conditions apply to the spouse’s entitlement?
The spouse must survive the deceased by 28 days to inherit. There is no survival requirement for other beneficiaries.
What is the spouse entitled to if there are surviving issue?
• All personal chattels absolutely.
• A statutory legacy of £322,000, tax-free, plus interest.
• One-half of the residue of the estate absolutely.
What are the issue entitled to if there is a surviving spouse?
The other half of the residue of the estate under statutory trusts.
What is the substitution limb of the statutory trusts?
If an issue beneficiary dies before the intestate, their own children (issue) can inherit in their place.
What is the contingency limb of the statutory trusts?
Each beneficiary must survive the intestate and reach 18 years old to inherit. Until then, they only have a contingent interest.
What is a vested interest in an inheritance?
If the contingency limb is satisfied, the beneficiary inherits absolutely and immediately.
What is the statutory order for intestacy?
The estate is distributed in this order:
1. Parents
2. Siblings (whole blood)
3. Siblings (half-blood)
4. Grandparents
5. Aunts/uncles (whole blood)
6. Aunts/uncles (half-blood)
7. Bona vacantia to the Crown.
Are personal representatives obligated to distribute specific assets to specific individuals?
No, they have discretion to appropriate assets as they see fit.
What are personal chattels under the statutory definition?
Tangible movable property, excluding:
• Money or securities for money
• Business property
• Investment property
What happens if the family home is owned as joint tenants?
It automatically passes to the surviving joint tenant(s) and does not form part of the succession estate.
What happens if the family home is owned as tenants in common?
The deceased’s share passes into the succession estate and is distributed under intestacy rules.
Can a surviving spouse appropriate the marital home under intestacy?
Yes, in full or partial satisfaction of their statutory entitlement.
How does a spouse elect to appropriate the marital home?
• Must be in writing to personal representatives
• Within 12 months of grant of representation
• PRs cannot sell home during this time without consent
What happens if the home is worth more than the spouse’s entitlement?
The spouse must pay the difference from their personal funds.
When is the value of a home determined for appropriation?
The value is determined at the date of appropriation, not date of death.
When is court consent required for appropriation of the home?
Court consent is needed if:
• Deceased only owned part of the building
• Home is part of a farm or business premises
