WAE WK 1 Flashcards
What is a testator?
A person who dies leaving a valid will
What is intestacy?
Dying without a valid will
What happens in partial intestacy?
Intestacy rules apply to assets not covered by the will.
What is a DMC?
Donatio Mortis Causa; a gift made in contemplation of death.
Name one asset type excluded from the succession estate.
Any of these: DMC gifts, discretionary pension benefits, insurance policies in trust, assets with statutory nominations, or property held as beneficial joint tenancy.
What are the three conditions for a valid DMC?
- Made in anticipation of death.
- Conditional upon death.
- Ownership/representation of the gift is transferred.
What is the key feature of discretionary pension scheme benefits regarding estates?
Trustees decide distribution; benefits are excluded from the estate.
How do life insurance policies in trust affect the succession estate?
Proceeds go to named beneficiaries, bypassing the estate.
What is the limit for statutory nominations on society accounts?
£5,000
What happens to jointly owned property with joint tenants?
It passes automatically to the surviving co-owner(s).
How does beneficial co-ownership apply to family homes?
Determining equitable ownership is crucial, even if the legal title is jointly held.
Are bank accounts typically held as beneficial joint tenants?
Yes, unless declared otherwise.
How are trust assets usually distributed?
According to the trust deed, not the will or intestacy rules
What are the three scenarios regarding will existence?
Testate (will covers all), intestate (no will), partially intestate (will covers some)
Which Act outlines the order of entitlement for an intestate estate?
Administration of Estates Act 1925 (s.46)
Who is the sole relevant class for inheritance if the deceased has a surviving spouse or issue?
The spouse/civil partner and issue.
What does ‘issue’ include in intestacy rules?
Children, grandchildren, and further descendants (including adopted, illegitimate, and posthumously born).
What does a surviving spouse inherit if there is no issue?
The entire estate.
What happens if there is issue but no surviving spouse?
The issue inherit the entire estate on statutory trusts.
What are the components of a spouse’s entitlement when there is both a spouse and issue?
Personal chattels, a statutory legacy of £322,000 plus interest, and half of the remaining residue.
What do the issue inherit when both a spouse and issue survive the deceased?
The other half of the residue on statutory trusts.
How long must a spouse survive the deceased to inherit?
28 days
What is the contingency limb of the statutory trusts?
Beneficiaries must reach 18 years old to inherit.
What is the substitution limb of the statutory trusts?
If a beneficiary predeceases the intestate, their descendants can inherit if they reach 18.
What is the order of entitlement in intestacy if there’s no spouse or issue?
Parents, siblings (whole blood), siblings (half-blood), grandparents, uncles/aunts (whole blood), uncles/aunts (half-blood).
What happens to the estate if there are no surviving relatives in an intestacy case?
It passes to the Crown as bona vacantia.
Can a surviving spouse appropriate the marital home under intestacy?
Yes, in full or partial satisfaction of their entitlement.
What is the time limit for a spouse to elect for appropriating the marital home?
12 months from the grant of administration.
What if the marital home’s value exceeds the spouse’s entitlement in an appropriation?
They must pay the difference from personal funds.
What is the most favorable class of title on the proprietorship register?
Title Absolute (Freehold or Leasehold)
What does qualified title signify?
A specific defect in the title, such as missing deeds.
When is possessory title granted?
When the proprietor has possession but lacks deeds or claims ownership via adverse possession.
What is good leasehold title?
Given when there’s no evidence of the landlord’s title, often upgradeable.
What should a buyer’s solicitor do if the title is not absolute?
Report to the client, check lender requirements, advise on indemnity insurance, consider upgrading.
What information might the proprietorship register reveal about co-owners?
It can list up to four individuals, LLPs, or companies as co-owners.
Name three additional pieces of information found on the proprietorship register.
Price paid (if acquired after 1 April 2000), indemnity covenants, and restrictions.
What is the defining feature of a fixed trust?
The settlor defines the exact entitlements of each beneficiary.
Give two examples of fixed trusts.
Fixed share trusts (e.g., 60% for A, 40% for B) and life interest trusts.
What distinguishes a discretionary trust?
Trustees have the power to decide how to distribute property among a class of beneficiaries.
What rights do beneficiaries have in a discretionary trust before discretion is exercised?
They have no automatic right to the trust property.
What is a power of appointment in the context of trusts?
It allows the donee to choose which individuals within a class will receive trust property.
What’s the difference between a fiduciary and a personal power of appointment?
Fiduciary (held by a trustee) requires periodic consideration, while personal (held by a non-trustee) does not
Define a vested interest in trust law.
A current right to property, with the beneficiary’s entitlement being certain.
Distinguish between vested in possession and vested in interest.
Vested in possession: current right to enjoy property; Vested in interest: current right to future enjoyment
What characterizes a contingent interest in trust law?
It depends on the occurrence of an uncertain future event.
How does a gift-over clause affect an interest?
It makes the interest contingent, as it provides an alternative beneficiary if a condition is not met.
What happens to income generated by trust property in a contingent interest scenario?
It is accumulated until the contingency is met, or it goes to an alternative beneficiary if the contingency fails.
Explain the concept of fortuitous vesting.
An intended recipient gains legal title through becoming the personal representative of the donor’s estate.
What are the three conditions for fortuitous vesting to apply?
Immediate intention to gift, continuing intention until death, recipient becomes executor (or administrator).
What is the key distinction between a DMC and a regular gift?
DMCs are conditional on the donor’s death and made in contemplation of imminent death.
