Introduction to Estates Flashcards
What law governs wills?
Section 3 of the Wills Act 1837.
What is a testator?
A person who has left a valid will.
What happens if a person dies without a valid will?
The intestacy rules apply.
What is the ‘succession estate’ or ‘distribution estate’?
The assets that can pass under a will or intestacy.
What happens if a will covers the entire succession estate?
The deceased is said to have died testate, and only wills law applies.
What happens if a will does not cover the entire succession estate?
The deceased is partially intestate, meaning:
• The will applies to the covered portion.
• Intestacy rules apply to the remainder.
What does it mean to die intestate?
The deceased has no valid will, and intestacy rules apply to the entire succession estate.
What law governs intestacy?
The Administration of Estates Act 1925 (AEA), as amended by the Inheritance and Trustees’ Powers Act 2014 (ITPA).
Do all assets pass under intestacy or a will?
No, some types of property are excluded and follow different legal rules.
What assets do not form part of the succession estate?
• Donationes mortis causa (deathbed gifts).
• Discretionary pension scheme benefits.
• Insurance policies written in trust.
• Statutory nominations.
• Property held as beneficial joint tenants.
• Certain trust interests.
What is a donatio mortis causa?
A gift made in contemplation of death.
What are the requirements for a donatio mortis causa?
- The donor must believe they may die imminently of a particular cause.
- The donor must make it clear the gift is conditional upon their death.
- The donor must part with the property or something representing ownership.
What happens to discretionary pension scheme benefits?
• Trustees have full discretion over payments.
• Deceased has no entitlement to the funds.
• Nomination is not binding, but usually followed.
• Benefit is released on production of death certificate.
Do insurance policy proceeds always pass under a will or intestacy?
No, it depends on how the policy was structured.
What happens to a simple life insurance policy?
The proceeds pass into the succession estate.
What happens if a life insurance policy was written in trust?
• It does not pass into the succession estate.
• The proceeds go directly to the beneficiary named in the trust.
How can life policies be written in trust?
- Under Section 11 of the Married Woman’s Property Act 1882.
- Expressly for a nominated third party.
- Into an existing trust.
What are statutory nominations?
A person can nominate someone to receive money from accounts with:
• Friendly societies.
• Industrial societies.
• Provident societies.
What is the maximum amount that can be nominated under statutory nominations?
£5,000.
Do statutory nominations override a will or intestacy?
Yes, the money passes directly to the nominated person.
What happens to jointly owned property when an owner dies?
It depends on whether it was held as:
• Joint tenants.
• Tenants in common.
What happens to property held as joint tenants?
• It automatically passes to the surviving joint tenant(s) by survivorship.
• It does not form part of the succession estate.
What happens to property held as tenants in common?
• Each owner has a divisible share in the property.
• The deceased’s share passes into the succession estate.
How is the family home usually owned?
• Land can only be registered to an individual or up to four joint tenants.
• If owned as joint tenants, it passes by survivorship.
• If owned as tenants in common, each share passes under succession law.
