intestacy (week 1)

Question 1

what is ‘testate’?

Answer 1

the term that is used if the deceased’s will covers their entire succession estate

Question 2

what is intestacy?

Answer 2

when a person dies without making a valid will

Question 3

what is partial intestacy?

Answer 3

when only part of their will covers their estate - eg, the will doesnt cover the entire estate

Question 4

what act is the intestacy rules found in?

Answer 4

administration of estates 1925

Question 5

what are the 6 main types of property which will NOT pass under the succession estate?

Answer 5

• 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

Question 6

if the deceased has a simple life insurance policy - do the proceeds of the policy pass to the succession estate?

Answer 6

yes they do

Question 7

if the benefit of the policy was written in trust for another person - do the proceeds form part of the succession estate?

Answer 7

no - as the proceeds belong to the beneficiaries nominated in the policy and vest on the insured’s death

Question 8

if there is a property which is joint tenants - does that go in the succession estate?

Answer 8

no it does not go in the succession estate - because survivorship applies

Question 9

if the deceased was a tenant in common - does this go in the succession estate?

Answer 9

yes it will go in the succession estate

Question 10

how long does a spouse/civil partner need to survive the deceased to inherit?

Answer 10

at least 28 days

Question 11

what is an ‘issue’ for the rules of intestacy?

Answer 11

means a child or remote linear descendants

Question 12

if the intestate leaves an issue but no spouse - who inherits?

Answer 12

issue inherits the entire succession estate on the statutory trusts

Question 13

if the interstate leaves a spouse and an issue - what are the entitlements that the issue gets?

Answer 13

the other half of the residuary (if any) on the statutory trusts

Question 14

if the interstate leaves a spouse and an issue - what are the entitlements that the spouse gets?

Answer 14

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

Question 15

when does a beneficiary have a contingent interest?

Answer 15

before they are 18 - they are deemed to have a contingent interest

Question 15

how much is the statutory legacy that the spouse gets free of tax?

Answer 15

£322,000

Question 16

when does a beneficiary have a vested interest?

Answer 16

when a beneficiary is already 18 or older then they can inherit absolutely and immediately

Question 17

if the interstate is not survived by a spouse/civil partner or issue then what is the order of entitlement of the succession estate?

Answer 17

1. Parents
2. Siblings of whole blood (share both parents) on the statutory trusts
3. Siblings of half blood (share one parent) on the statutory trusts
4. Grandparents
5. Uncles and aunts of whole blood (whole blood siblings of a parent) on the statutory trusts
6. Uncles and aunts of half blood (half blood siblings of a parent) on the statutory trusts
7. The crown as bona vacantia

Question 18

is there an obligation to distribute particular assets to particular individuals?

Answer 18

no - it is up to the personal representatives to appropriate assets as they see fit, in fulfilment of the individual’s entitlement

Question 19

what are the 3 things excluded in the definition of ‘personal chattels’?

Answer 19

1. money or securities for money
2. property used by the interstate at their death solely or mainly for business purposes
3. property held at the death of the interstate solely as an investment

Question 20

do surviving tenants in common need a second trustee?

Answer 20

yes

Question 21

if there is a restriction on the land registry official copies - is the property owned as tenants in common or joint tenants?

Answer 21

tenants in common