WAE 1 - Succession Estate and Intestacy

Question 1

What is the succession/distribution estate?

Answer 1

Assets capable of passing under a will or by intestacy.

Question 2

What assets are not included in the succession estate?

Answer 2

• Donationes mortis causa (gift in contemplation of imminent death)
• Discretionary pension scheme benefits (e.g., employer’s discretionary pension)
• Insurance policies written in trust (e.g., life insurance written in trust for a beneficiary)
• Statutory nominations (e.g., friendly societies, cannot exceed £5000)
• Property held as beneficial joint tenants
• Certain beneficial interests under trusts

Question 3

What happens to benefits under an employer’s discretionary pension scheme?

Answer 3

They do not form part of the succession estate and can be nominated to a third party.

Question 4

When do life insurance policy proceeds form part of the succession estate?

Answer 4

When it is a simple life insurance policy not written in trust.

Question 5

What types of societies allow statutory nominations, and what is the limit?

Answer 5

• Friendly societies
• Industrial societies
• Provident societies

Limit is £5000.

Question 6

When is a trust fund included in the deceased’s taxable estate?

Answer 6

• When a life tenant dies, the trust fund may be included.
• If the deceased had a remainder interest, it forms part of the succession estate.
• If the deceased had a power of appointment, they may exercise it by will.

Question 7

What does a surviving spouse/civil partner receive under intestacy?

Answer 7

• Personal chattels
• Statutory legacy of £322,000
• Half of the residue
• The other half of the residue goes to issue (children, grandchildren, etc.) under statutory trusts.

Question 8

How do issue inherit under intestacy?

Answer 8

• If a child predeceases the deceased, their issue (e.g., grandchildren) inherit under substitution limb of statutory trusts.
• The statutory trusts also require any issue to be an adult before their interest vests (contingency limb).

Question 9

If there is no spouse or issue, who inherits under intestacy?

Answer 9

• Parents
• Siblings of whole blood (on statutory trusts)
• Siblings of half blood (on statutory trusts)
• Grandparents
• Uncles & aunts of whole blood
• Uncles & aunts of half blood
• The Crown

Question 10

Must all beneficiaries survive the deceased by 28 days?

Answer 10

No, only spouse/civil partner must survive by 28 days. No such requirement for other beneficiaries.

Question 11

Is a separated but not divorced spouse entitled under intestacy?

Answer 11

Yes, they are still entitled.

Question 12

If multiple persons fall within the same entitlement category, how is the estate divided?

Answer 12

It is divided equally among them.

Question 13

Does a surviving spouse have an automatic right to the marital home?

Answer 13

No, but they have a right of election to buy the deceased’s share using their entitlement.

Question 14

What are the conditions for a surviving spouse to buy the deceased’s share in the home?

Answer 14

• Must elect in writing within 12 months of the date of grant
• May pay the difference from personal funds
• Court consent needed if the property is part of a farm or business premises
• Personal Representatives (PRs) cannot sell during this period without spouse’s consent.