Intestacy and Succession

Question 1

What property will not pass to the succession estate?

Answer 1

• Donationes mortis causa
• Discretionary pension scheme benefits
• Insurance policies written in Trust
• Statutory nominations
• Property held as beneficial joint tenants
• Other beneficial interest under Trusts and Property Trusts

Question 2

What are the requirements of donatio mortis causa?

Answer 2

• The gift is made because they believe they will die imminently
• Conditional on their death
• Parts with property/something representing ownership

Question 3

How can a Life policy be written in Trust?

Answer 3

• For the benefit of spouse and/or children
• Expressly for benefit of nominated Third Party
• Into an existing Trust for the benefit of named beneficiaries in Trust Deed

Question 4

What are the statutory nominations?

Answer 4

• Friendly society
• Industrial society
• Provident society

Question 5

What happens if the deceased had a simple life insurance policy?

Answer 5

Passes to succession estate

Question 6

How much can you give to statutory nominations?

Answer 6

Up to £5000

Question 7

What assets are commonly joint ownership?

Answer 7

Land and bank accounts

Question 8

When can remainder interest pass to the estate?

Answer 8

When the remainder interest is vested ‘in interest’ i.e. not contingent on remainderman outliving tenant

Question 9

Why do we not usually include value of assets held in trust for succession estate and what is the exception?

Answer 9

Because they are distributed in accordance with the Trust Deed
Exception - deceased exercises power of appointment

Question 10

What is the particular intestacy rule relevant to spouses?

Answer 10

Must survive deceased by 28 days

Question 11

What does the spouse receive according to intestacy rules if a spouse and issue are left?

Answer 11

• Chattels
• £322,000 tax free and interest
• Half of residue

Question 12

What does the issue receive according to intestacy rules if a spouse and issue are left?

Answer 12

Half of residue on statutory trusts

Question 13

What happens if issue doesnt survive deceased under intestacy rules?

Answer 13

Their own issue may inherit under substitution limb of statutory trusts

Question 14

What do issue need to satisfy for intestacy rules?

Answer 14

Contingency limb

Question 15

What are the intestacy rules order where there is no spouse/issue?

Answer 15

1. Parents
2. whole siblings on statutory trusts
3. Half siblings on statutory trusts
4. Grandparents
5. Whole aunt/uncles
6. Half aunt/uncles
7. Bona Vacantia

Question 16

What is the right to appropriate the marital home?

Answer 16

Spouse can make an election in writing to personal representatives within 12 months of the grant of representation to buy.