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SQE general > WAE WK 1 > Flashcards

WAE WK 1 Flashcards

1
Q

What is a testator?

A

A person who dies leaving a valid will

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2
Q

What is intestacy?

A

Dying without a valid will

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3
Q

What happens in partial intestacy?

A

Intestacy rules apply to assets not covered by the will.

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4
Q

What is a DMC?

A

Donatio Mortis Causa; a gift made in contemplation of death.

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5
Q

Name one asset type excluded from the succession estate.

A

Any of these: DMC gifts, discretionary pension benefits, insurance policies in trust, assets with statutory nominations, or property held as beneficial joint tenancy.

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6
Q

What are the three conditions for a valid DMC?

A
  1. Made in anticipation of death.
  2. Conditional upon death.
  3. Ownership/representation of the gift is transferred.
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7
Q

What is the key feature of discretionary pension scheme benefits regarding estates?

A

Trustees decide distribution; benefits are excluded from the estate.

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8
Q

How do life insurance policies in trust affect the succession estate?

A

Proceeds go to named beneficiaries, bypassing the estate.

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9
Q

What is the limit for statutory nominations on society accounts?

A

£5,000

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10
Q

What happens to jointly owned property with joint tenants?

A

It passes automatically to the surviving co-owner(s).

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11
Q

How does beneficial co-ownership apply to family homes?

A

Determining equitable ownership is crucial, even if the legal title is jointly held.

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12
Q

Are bank accounts typically held as beneficial joint tenants?

A

Yes, unless declared otherwise.

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13
Q

How are trust assets usually distributed?

A

According to the trust deed, not the will or intestacy rules

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14
Q

What are the three scenarios regarding will existence?

A

Testate (will covers all), intestate (no will), partially intestate (will covers some)

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15
Q

Which Act outlines the order of entitlement for an intestate estate?

A

Administration of Estates Act 1925 (s.46)

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16
Q

Who is the sole relevant class for inheritance if the deceased has a surviving spouse or issue?

A

The spouse/civil partner and issue.

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17
Q

What does ‘issue’ include in intestacy rules?

A

Children, grandchildren, and further descendants (including adopted, illegitimate, and posthumously born).

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18
Q

What does a surviving spouse inherit if there is no issue?

A

The entire estate.

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19
Q

What happens if there is issue but no surviving spouse?

A

The issue inherit the entire estate on statutory trusts.

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20
Q

What are the components of a spouse’s entitlement when there is both a spouse and issue?

A

Personal chattels, a statutory legacy of £322,000 plus interest, and half of the remaining residue.

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21
Q

What do the issue inherit when both a spouse and issue survive the deceased?

A

The other half of the residue on statutory trusts.

22
Q

How long must a spouse survive the deceased to inherit?

A

28 days

23
Q

What is the contingency limb of the statutory trusts?

A

Beneficiaries must reach 18 years old to inherit.

24
Q

What is the substitution limb of the statutory trusts?

A

If a beneficiary predeceases the intestate, their descendants can inherit if they reach 18.

25
Q

What is the order of entitlement in intestacy if there’s no spouse or issue?

A

Parents, siblings (whole blood), siblings (half-blood), grandparents, uncles/aunts (whole blood), uncles/aunts (half-blood).

26
Q

What happens to the estate if there are no surviving relatives in an intestacy case?

A

It passes to the Crown as bona vacantia.

27
Q

Can a surviving spouse appropriate the marital home under intestacy?

A

Yes, in full or partial satisfaction of their entitlement.

28
Q

What is the time limit for a spouse to elect for appropriating the marital home?

A

12 months from the grant of administration.

29
Q

What if the marital home’s value exceeds the spouse’s entitlement in an appropriation?

A

They must pay the difference from personal funds.

30
Q

What is the most favorable class of title on the proprietorship register?

A

Title Absolute (Freehold or Leasehold)

31
Q

What does qualified title signify?

A

A specific defect in the title, such as missing deeds.

32
Q

When is possessory title granted?

A

When the proprietor has possession but lacks deeds or claims ownership via adverse possession.

33
Q

What is good leasehold title?

A

Given when there’s no evidence of the landlord’s title, often upgradeable.

34
Q

What should a buyer’s solicitor do if the title is not absolute?

A

Report to the client, check lender requirements, advise on indemnity insurance, consider upgrading.

35
Q

What information might the proprietorship register reveal about co-owners?

A

It can list up to four individuals, LLPs, or companies as co-owners.

36
Q

Name three additional pieces of information found on the proprietorship register.

A

Price paid (if acquired after 1 April 2000), indemnity covenants, and restrictions.

37
Q

What is the defining feature of a fixed trust?

A

The settlor defines the exact entitlements of each beneficiary.

38
Q

Give two examples of fixed trusts.

A

Fixed share trusts (e.g., 60% for A, 40% for B) and life interest trusts.

39
Q

What distinguishes a discretionary trust?

A

Trustees have the power to decide how to distribute property among a class of beneficiaries.

40
Q

What rights do beneficiaries have in a discretionary trust before discretion is exercised?

A

They have no automatic right to the trust property.

41
Q

What is a power of appointment in the context of trusts?

A

It allows the donee to choose which individuals within a class will receive trust property.

42
Q

What’s the difference between a fiduciary and a personal power of appointment?

A

Fiduciary (held by a trustee) requires periodic consideration, while personal (held by a non-trustee) does not

43
Q

Define a vested interest in trust law.

A

A current right to property, with the beneficiary’s entitlement being certain.

44
Q

Distinguish between vested in possession and vested in interest.

A

Vested in possession: current right to enjoy property; Vested in interest: current right to future enjoyment

45
Q

What characterizes a contingent interest in trust law?

A

It depends on the occurrence of an uncertain future event.

46
Q

How does a gift-over clause affect an interest?

A

It makes the interest contingent, as it provides an alternative beneficiary if a condition is not met.

47
Q

What happens to income generated by trust property in a contingent interest scenario?

A

It is accumulated until the contingency is met, or it goes to an alternative beneficiary if the contingency fails.

48
Q

Explain the concept of fortuitous vesting.

A

An intended recipient gains legal title through becoming the personal representative of the donor’s estate.

49
Q

What are the three conditions for fortuitous vesting to apply?

A

Immediate intention to gift, continuing intention until death, recipient becomes executor (or administrator).

50
Q

What is the key distinction between a DMC and a regular gift?

A

DMCs are conditional on the donor’s death and made in contemplation of imminent death.

SQE general (24 decks)

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