Introduction to Estates Flashcards
Which Act governs the ability of individuals to distribute their estate by will?
a) Administration of Estates Act 1925
b) Wills Act 1837
c) Inheritance and Trustees’ Powers Act 2014
d) Married Women’s Property Act 1882
b) Wills Act 1837
Explanation: The Wills Act 1837 provides the statutory basis for making and executing a will in England and Wales. It confirms that a person can legally devise, bequeath, or dispose of their property through a will.
If a deceased’s will does not dispose of their entire estate, what applies to the remaining property?
a) It escheats to the Crown
b) It is distributed under the intestacy rules
c) It is held in trust for 10 years
d) It automatically passes to the next of kin
b) It is distributed under the intestacy rules
Explanation: If a will does not cover all of a deceased’s assets, the unaccounted-for portion of the estate falls under the intestacy rules, meaning it is distributed as if no will existed for that part of the estate.
Which of the following assets will always pass outside the succession estate?
a) A car owned by the deceased
b) A life insurance policy written in trust
c) A pension scheme with no nomination
d) Cash in a personal savings account
b) A life insurance policy written in trust
Explanation: If a life insurance policy is written in trust, the proceeds go directly to the named beneficiaries and do not form part of the estate for succession purposes.
Which legal principle applies to jointly owned property passing to the survivor?
a) Doctrine of advancement
b) Right of survivorship
c) Doctrine of lapse
d) Resulting trust doctrine
b) Right of survivorship
Explanation: When property is held as joint tenants, the right of survivorship ensures that the deceased’s share automatically passes to the surviving co-owner(s), outside of the succession estate.
Jamie and Lisa own a house as joint tenants. Jamie dies. Who inherits the house?
a) Jamie’s children under intestacy
b) Lisa automatically
c) Jamie’s executor
d) The Crown
b) Lisa automatically
Explanation: As joint tenants, ownership passes automatically to the surviving tenant(s) through the right of survivorship, meaning Jamie’s share does not form part of his estate.
Sophie dies leaving a will stating “I leave my stocks to my brother Alex and my home to my sister Kate.” Sophie also owned a valuable painting not mentioned in her will. Who inherits the painting?
a) Kate
b) Alex
c) The residuary beneficiary
d) The intestacy beneficiaries
d) The intestacy beneficiaries
Explanation: Since the painting is not mentioned in the will, and there is no residuary clause, it falls into partial intestacy and is distributed according to the intestacy rules.
David, terminally ill, tells his nephew to keep his signed football jersey if he dies. What is required for this to be a valid donatio mortis causa (DMC)?
a) David must die
b) David must have handed over the jersey
c) The will must confirm the gift
d) David must not have any children
b) David must have handed over the jersey
Explanation: For a valid DMC, the donor must physically transfer the gift or something representing ownership while expressing that it is conditional on their death.
What is the key case for joint bank accounts and beneficial ownership?
a) Aroso v Coutts & Co
b) Stack v Dowden
c) Pettitt v Pettitt
d) Re Dorman
a) Aroso v Coutts & Co
Explanation: Aroso v Coutts & Co established the principles regarding beneficial ownership of joint bank accounts and when survivorship applies.
Which asset is NOT affected by the right of survivorship?
a) Joint bank account
b) House held as tenants in common
c) Pension with no nomination
d) Investment trust fund
b) House held as tenants in common
Explanation: Unlike joint tenancy, tenancy in common means each co-owner has a distinct share that forms part of their estate upon death, rather than passing automatically to the surviving owner.
In what situation does an insurance payout form part of the succession estate?
a) If the policy is written in trust
b) If there is no named beneficiary
c) If the deceased was married
d) If the policy was paid off
b) If there is no named beneficiary
Explanation: If a life insurance policy does not have a named beneficiary or is not written in trust, the proceeds form part of the deceased’s succession estate.
Which rule determines the passing of statutory nomination funds?
a) The will
b) The intestacy rules
c) The statutory nomination rules
d) The Court of Protection
c) The statutory nomination rules
Explanation: Statutory nominations (e.g., Friendly Societies) allow assets to be transferred directly to a nominated beneficiary, bypassing both wills and intestacy rules.
Which trust interest DOES form part of the succession estate?
a) A life interest
b) A remainder interest vested in interest
c) A discretionary trust
d) A joint tenancy
b) A remainder interest vested in interest
Explanation: A vested remainder interest survives the remainderman’s death and can be inherited under a will or intestacy.
What happens to a deceased’s life interest under a trust?
a) It forms part of their estate
b) It passes under their will
c) It expires
d) It is transferred to their children
c) It expires
Explanation: A life interest is for the beneficiary’s lifetime only. Upon death, it ends, and the remainder interest passes to the next designated beneficiary.
What is the significance of s.11 Married Women’s Property Act 1882?
a) It allows life insurance to be written in trust
b) It applies intestacy rules
c) It creates life interests
d) It governs property held in common
a) It allows life insurance to be written in trust
Explanation: Under this section, life insurance policies can be placed in trust for a spouse or children, meaning the proceeds bypass the estate.
Who distributes assets if the deceased died intestate?
a) The Crown
b) The Executor
c) The Administrator
d) The Beneficiaries
c) The Administrator
Explanation: If there is no will, no executor is appointed. Instead, an administrator is assigned under intestacy laws to manage and distribute the estate.
