Introduction Flashcards
Properties excluded from succession estate
1) Donations mortis causa
2) Discretionary pension scheme benefits
3) Insurance policies written in trust
4) Joint tenant properties
5) Beneficial interests under trust
6) Property held in a trust
Requirements for Donations Mortis Causa
1) Gifted in contemplation of immediate death for specific cause
2) Clear that gift is conditional on death
3) Donor parts with property or smth representing ownership of it
Life tenant under life interest trust
Interest expires on their death and does NOT pass to their estate
Remainderman’s remainder interest
Can go to his death provided the interest is not contingent on him outliving the life tenant
Spouse is entitled to estate if they survive deceased by
28 days
Spouse is entitled to
- personal chattels
- statutory legacy of £322,000 tax-free
- half of residue
Statutory Trusts 2 limbs
1) Contingency Limb (reach age 18 = vested interest)
2) Substitution Limb (if issue dies, their own issue will inherit)
If issue do not survive the deceased, will their own issue inherit anything?
Yes, under the ‘substitution limb’ of the statutory trusts
Statutory Order of Entitlement List
1) Parents
2) Siblings
3) Half siblings
4) Grandparents
5) Uncles & aunts
….
How does statutory entitlement work?
Highest ranked person is entitled to entire estate. People lower down get nothing
Personal chattels exclude:
- money & securities for money
- property used mainly for business purposes
- property used solely as an investment
Appropriation of marital home
Spouse has right to ‘buy’ deceased’ share of marital home - must make election in writing to personal reps within 12 months of grant
Do boyfriends and girlfriends have any entitlement under intestacy rules
No
Can a fixed interest in a trust pass to the deceased’s estate?
Yes
Can a discretionary interest in a trust pass to the deceased’s estate?
No
