Intestacy rules Flashcards
Who inherits the entire estate if there is a spouse but no issue?
Spouse inherits entire SE absolutely provided they survive by 28 days.
What happens to the estate if there is issue but no spouse?
Issue inherit entire SE absolutely
What is the inheritance rule if both spouse and issue are present?
If Spouse does not survive by 28 days, Issue inherit entire SE absolutely; otherwise, Spouse inherits personal chattels, statutory legacy of £322,000 free of tax and costs plus interest and one half of the residue, while Issue inherits other half of the residue on statutory trusts
What must issue do to inherit if they outlive the intestate?
They must satisfy the contingency limb and reach the age of 18
If the issue does not outlive the intestate, who can inherit under the substitution limb?
Their issue, provided they also satisfy the contingency limb
In the absence of both spouse and issue, who follows the order of entitlement?
- Parents
- Siblings of whole blood on the statutory trusts
- Siblings of half blood on the statutory trusts
- Grandparents
- Uncles and aunts of whole blood on the statutory trusts
- Uncles and aunts of half blood on the statutory trusts
- The crown as bona vacantia
How is the estate divided if there is more than one person in a relevant category?
Estate is divided equally
What personal chattels is a spouse entitled to receive?
A spouse is entitled to receive tangible movable property. This excludes:
- money or security for money
- property used solely or mainly for business purposes
- property held solely as an investment
Does a spouse have an automatic right to the deceased’s share of the marital home?
No, there is no automatic right to receive the deceased’s share of the marital home.
What must a spouse do to appropriate the marital home?
The spouse may make an election to appropriate the home in full or partial satisfaction of their statutory entitlements.
How should a spouse make their election regarding the marital home?
The spouse should make an election in writing to the personal representatives (PRs) within 12 months of the date of the grant.
Can PRs sell the marital home during the election period?
PRs cannot normally sell the home during this period without spousal consent.
What may a spouse have to pay if their entitlement is lower than the value they are appropriating?
The spouse may have to pay the difference in value of the house.
When is the value of the house assessed for appropriation?
The value is assessed at the date of appropriation, not the date of death.
What is required if the home is part of a larger building or business premises?
Court permission is required if the home is only part of a building owned by the deceased or is part of a farm or other business premises.
How are the statutory legacy (£322,000) and remaining residue distributed to the spouse?
Remaining beneficial entitlements (£322,000 statutory legacy) and the residue are distributed at the PR’s discretion.
Do PRs have an obligation to distribute particular assets to particular individuals?
No, there is no obligation to distribute particular assets to particular individuals.
