Intestacy Rules Flashcards
when do intestacy rules under s46 Administration of Estates Act 1925 apply?
deceased died:
- without a valid will
- with a valid will that does not dispose of all their assets - intestacy rules apply to the assets not governed by the will
what assets do the intestacy rules apply to?
assets that fall within the succession estate and not to assets which do not fall within the succession estate
intestacy rules: if only spouse survives
spouse entitled to succession estate absolutely
BUT spouse must survive the deceased by 28 days
intestacy rules: if issue but no spouse
issue inherit succession estate equally on statutory trusts
intestacy rules: if both spouse and issue survive
spouse (if surviving by 28 days)=
- personal chattels absolutely
- statutory legacy of £322,000 (no tax/costs but with interest)
- 1/2 of residue
issue = 1/2 of residue divided equally under the statutory trusts
what are the statutory trusts rules? (2 limbs)
(1) contingency limb
(2) substitution limb
what is the requirement under the contingency limb of the statutory trusts rules?
the intestate’s issue will attain a vested interest in their beneficial entitlement if they:
(1) survive the intestate, and
(2) attain the age of 18
they will be able to inherit absolutely and immediately
until this is satisfied, their interest will be contingent and held on trust until they satisfy the contingency
what happens to the issue’s inheritance if they if are not yet 18 when the deceased dies?
their entitlement will be held on trust until they turn 18 (until the contingency is satisfied)
(contingency limb of statutory trusts rules)
what is the substitution limb of the statutory trusts?
if an entitled beneficiary dies before the intestate and leaves issue of their own, their share will pass to their own issue
if there is more than one issue of the issue then the share will be divided equally amongst them
note that the contingency limb also applies here - the issue of the issue will have a vested interest and inherit absolutely if they are 18+, but if they are under 18 they will obtain a contingent interest which vests once they reach 18
does the substitution limb of the statutory trusts apply if the intestate’s issue survives the intestate but subsequently dies before attaining a vested interest (dies before reaching 18)?
yes
what is an issue?
lineal descendants
includes: children, grandchildren, legally adopted children, children not yet born
does not include: stepchildren or people treated as children of the family
what is chattel?
tangible moveable property excluding:
- cash
- assets used at intestate’s death solely or mainly for business purposes
- assets held at intestate’s death solely as an investment (some personal use means the item is still chattel even if the deceased purchased it hoping it would increase in value)
what is the spouse’s right to appropriate the matrimonial home? what is the time limit?
the spouse has the right to elect to appropriate the marital home in full or partial satisfaction of their entitlement under the intestacy rules
this is only where the home was owned solely or as tenants in common (not as JT because it does not pass under the succession estate and survivorship applies)
the spouse has 12 months from the date of grant to elect in writing to the PRs
the home is valued at the date of appropriation (not death)
how long must the spouse/cp survive the intestate to be able to inherit under the intestacy rules?
28 days
what happens if the intestate dies without leaving spouse and issue?
the estate is distributed according to the ranking order:
(1) parents
(2) whole blood siblings (on statutory trusts)
(3) half blood siblings (on statutory trusts)
(4) grandparents
(5) uncles and aunts of whole blood (on statutory trusts)
(6) uncles and aunts of half blood
(7) the crown bona vacantia
if there is more than one person in the relevant category, the estate is divided equally
