intestacy (week 1) Flashcards
what is ‘testate’?
the term that is used if the deceased’s will covers their entire succession estate
what is intestacy?
when a person dies without making a valid will
what is partial intestacy?
when only part of their will covers their estate - eg, the will doesnt cover the entire estate
what act is the intestacy rules found in?
administration of estates 1925
what are the 6 main types of property which will NOT pass under the succession estate?
- Donationes mortis causa (DMC): gift made in contemplation of death
- Discretionary pension scheme benefits
- Insurance policies written in trust
- Statutory nominations
- Property held as beneficial joint tenants
- Some other beneficial interests under trusts
if the deceased has a simple life insurance policy - do the proceeds of the policy pass to the succession estate?
yes they do
if the benefit of the policy was written in trust for another person - do the proceeds form part of the succession estate?
no - as the proceeds belong to the beneficiaries nominated in the policy and vest on the insured’s death
if there is a property which is joint tenants - does that go in the succession estate?
no it does not go in the succession estate - because survivorship applies
if the deceased was a tenant in common - does this go in the succession estate?
yes it will go in the succession estate
how long does a spouse/civil partner need to survive the deceased to inherit?
at least 28 days
what is an ‘issue’ for the rules of intestacy?
means a child or remote linear descendants
if the intestate leaves an issue but no spouse - who inherits?
issue inherits the entire succession estate on the statutory trusts
if the interstate leaves a spouse and an issue - what are the entitlements that the issue gets?
the other half of the residuary (if any) on the statutory trusts
if the interstate leaves a spouse and an issue - what are the entitlements that the spouse gets?
personal chattels absolutely
statutory legacy of £322,000 free of tax and costs plus interest from date of death to the date on which payment is made
other half of the residue (if any) absolutely
when does a beneficiary have a contingent interest?
before they are 18 - they are deemed to have a contingent interest
how much is the statutory legacy that the spouse gets free of tax?
£322,000
when does a beneficiary have a vested interest?
when a beneficiary is already 18 or older then they can inherit absolutely and immediately
if the interstate is not survived by a spouse/civil partner or issue then what is the order of entitlement of the succession estate?
- Parents
- Siblings of whole blood (share both parents) on the statutory trusts
- Siblings of half blood (share one parent) on the statutory trusts
- Grandparents
- Uncles and aunts of whole blood (whole blood siblings of a parent) on the statutory trusts
- Uncles and aunts of half blood (half blood siblings of a parent) on the statutory trusts
- The crown as bona vacantia
is there an obligation to distribute particular assets to particular individuals?
no - it is up to the personal representatives to appropriate assets as they see fit, in fulfilment of the individual’s entitlement
what are the 3 things excluded in the definition of ‘personal chattels’?
- money or securities for money
- property used by the interstate at their death solely or mainly for business purposes
- property held at the death of the interstate solely as an investment
do surviving tenants in common need a second trustee?
yes
if there is a restriction on the land registry official copies - is the property owned as tenants in common or joint tenants?
tenants in common
