WAE WK 4 Flashcards
What is an estate?
All the property a person owns at their death.
What does the Wills Act 1837 allow?
A person to decide how their estate is distributed after their death.
What happens to the property if the will doesn’t specify how it should be distributed?
It devolves upon the executor or administrator.
What are the two key issues when distributing an estate?
(1) Whether a valid will exists, and (2) the nature of the assets involved.
What is a testator?
A deceased person who left a valid will.
What is intestacy?
Dying without a valid will.
What is partial intestacy?
When a will exists but doesn’t cover all the deceased’s assets.
If Cassie makes a will leaving her car to her brother but forgets to mention her house, what happens to the house?
The house will be distributed according to intestacy rules as it was not covered by the will.
What is the age requirement for beneficiaries to inherit under the intestacy rules?
18 years old
What happens if a beneficiary dies before the intestate, but they have children?
Their children (the intestate’s grandchildren) can inherit, provided they are at least 18 years old.
List the order of entitlement if someone dies intestate without a spouse or children.
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 under the intestacy rules?
It passes to the Crown as bona vacantia.
Where do you find information about the ownership of registered land?
On the Proprietorship Register of the Official Copies.
What does Class of Title indicate?
The Land Registry’s level of confidence in the registered proprietor’s ownership.
What is the most favorable Class of Title?
Title Absolute.
What should a buyer’s solicitor do if the property has a Class of Title other than Title Absolute?
Report to the client, check lender requirements, advise on title indemnity insurance, and consider upgrading to Title Absolute.
Who is the Registered Proprietor?
The person(s) listed as the owner(s) on the Proprietorship Register.
Besides individuals, what other entities can be Registered Proprietors?
Limited Liability Partnerships (LLPs) and Companies.
What additional information is included in the Proprietorship Register?
Price paid, indemnity covenants, and restrictions on the proprietor’s right to sell.
What is the maximum number of co-owners that can be registered on a property?
Four individuals, LLPs, or companies.
What is beneficial entitlement?
It refers to the rights a beneficiary has to trust property.
In a fixed trust, who determines the beneficiaries’ entitlements?
The settlor (the person who created the trust).
Do trustees have discretion in distributing assets under a fixed trust?
No, they must follow the settlor’s instructions.
What is a key characteristic of a discretionary trust?
Trustees have the power to decide how to distribute assets among a class of potential beneficiaries.
Do beneficiaries of a discretionary trust have an automatic right to trust property?
No, only if the trustees exercise discretion in their favor.
What is a Power of Appointment?
It allows the donee to choose which individuals within a specified class will receive trust property.
What is the difference between a fiduciary power and a personal power?
A fiduciary power is given to a trustee and must be considered periodically; a personal power is given to a non-trustee with no obligation to exercise it.
What is a vested interest?
A current, certain right to property.
Explain the difference between vested in possession and vested in interest.
Vested in possession: Current right to enjoy the property; Vested in interest: Current right to property, but enjoyment is delayed.
What is a contingent interest?
A right to property dependent on a future uncertain event.
What does capital represent in a trust?
The lasting asset of the trust, like land or money.
What does income represent in a trust?
The regular proceeds generated by the capital assets, like rent or dividends.
If a sole beneficiary is absolutely entitled to a trust, what happens to the income generated?
They receive it as it arises if they are an adult, or the trustees manage it if they are a minor.
In a successive interest trust, who is entitled to the income and who is entitled to the capital?
The life tenant receives the income, and the remainder beneficiary receives the capital after the life tenant’s death.
What does the Milroy v Lord rule state?
If legal title is not transferred, a gift or trust fails.
Name two Milroy v Lord exceptions that apply upon the death of the transferor.
Fortuitous Vesting and Donationes Mortis Causa (DMC).
What is Fortuitous Vesting (Strong v Bird)?
When the intended recipient becomes the executor of the transferor’s estate, thus obtaining legal title through their role.
List the three conditions for Fortuitous Vesting to apply.
(1) Intention to make an immediate gift,
(2) Continuing intention until death,
(3) Recipient becomes an executor of the donor’s estate.
What are Donationes Mortis Causa (DMC)?
Deathbed gifts made in contemplation of imminent death, where the donor parts with dominion over the property.
Give an example of a valid DMC.
Handing someone the keys to a safe containing title deeds to a house, while stating the house is theirs if the donor dies.
What is the main purpose of estate administration?
To legally manage and distribute a deceased person’s assets according to their will or intestacy rules.
What is the difference between an executor and an administrator?
An executor is named in the will, while an administrator is appointed by the court if there’s no valid will or no executor can act.
What is a grant of representation?
A court order that authorizes a PR to deal with the deceased’s assets.
What are the three main types of grants of representation?
Grant of Probate, Grant of Letters of Administration (with will), and Grant of Letters of Administration.
When is a grant of probate issued?
When there’s a valid will and named executors willing and able to act.
Name three assets that can be distributed without a grant of representation.
Assets outside the succession estate, assets under the Administration of Estates (Small Payments) Act 1965, and personal household possessions.
What is the statutory limit for asset value under the Small Payments Act 1965?
£5,000 per asset.
What are the preliminary steps PRs should take before applying for a grant?
Register the death, arrange the funeral, locate the will, inform beneficiaries, schedule assets and liabilities, notify relevant institutions.
Who can apply for a grant of letters of administration if there is a valid will but no acting executor?
The trustee of the residuary estate, a residuary beneficiary, or other beneficiaries/creditors in that order of priority.
What is the order of priority for applying for a grant of letters of administration in an intestate estate?
Surviving spouse/civil partner, children, parents, siblings (whole blood), siblings (half-blood), and so on.
