WE 1

Question 1

What does ‘Testate’ mean?

Answer 1

The deceased has left a valid will

Question 2

What does ‘Intestate’ mean?

Answer 2

The deceased has left NOT left a will, the intestacy rules apply to their entire esate

Question 3

What does ‘Partially intestate’ mean

Answer 3

Some, but not all, of their property is disposed of by will.

Question 4

Intestacy: how long must the deceased be survived by the spouse in order that the spouse inherit?

Answer 4

28 days

Question 5

Intestacy: what happens if the spouse does not survive for 28 days?

Answer 5

The rules apply as if the deceased was not survived by their spouse.

Question 6

Intestacy: Do any other beneficiaries have to survive for 28 days?

Answer 6

No - just the spouse.

Question 7

Intestacy: What is the entitlement of the Spouse if the deceased is survived by Spouse and issue?

Answer 7

• Personal chattels absolutely,
• Statutory legacy of £322,000 free of tax + with interest from the date of death.
• One half of the residue (if any) absolutely

Question 8

Intestacy: What is the entitlement of the Issue if the deceased is survived by Spouse and issue?

Answer 8

Other half of the residue (if any)

Question 9

Intestacy: Do issue need to satisfy the ‘contingency limb’ before obtaining a vested interest?

Answer 9

Yes

Question 10

Intestacy: what is the contingency limb of a statutory trust?

Answer 10

Issue must:

• Survive the intestate
  AND
• Reach the age of 18 or marry

Question 11

Intestacy: What happens if issue predecease the intestate?

Answer 11

The issue’s own children will inherit the issue’s share under substitution.

Question 12

Intestacy: What is the order where intestate dies without a spouse or issue

Answer 12

1) Parents
2) Siblings of whole blood
3) Siblings of half blood
4) Grandparents
5) Uncles and Aunts of whole blood
6) Uncles and aunts of half blood
7) the crown

(where more than one person is in the relevant category, the succession estate is divided equally

Question 13

Intestacy: What assets are excluded from being ‘chattels’?

Answer 13

• Money or securities for money
• Property used solely or mainly for business purposes
• Property held at death purely as an investment

Question 14

Intestacy: Does the spouse have a right to the family home?

Answer 14

• If joint tenants then the property will pass to the spouse by survivorship anyway.

_ If tenants in common, the spouse can elect to appropriate the home in full or partial satisfaction of their statutory entitlements.

Question 15

Intestacy: What are the rules on the spouses right of appropriation of the family home?

Answer 15

• must make an election within 12 months of the date of grant (PR’s cannot sell during this period without spouse’s consent.
• If their entitlement is less than the value of the house, they must make up the difference.

_ court consent is required when:

Question 16

What pass outside the succession estate?

Answer 16

• DMCs
• discretionary pension payments
• insurance policies written into trust
• statutory nominations
• joint tenant property

Question 17

What’s a DMC

Answer 17

• gifted in anticipation of imminent death of a particular cause
• clear gift is conditional on dying
• donor parts with property or something representing it

Question 18

What’s a discretionary pension scheme

Answer 18

Nominate someone to benefit

Question 19

Which insurance policies fall outside the succession estate

Answer 19

• written into trust

Question 20

What are statutory nominations?

Answer 20

Nominations of £5,000 or less from:

• Friendly society
• Infustrial society
• Provident society

Question 21

Which life interests are in the succession estate

Answer 21

• life tenant = not in estate
• remainder interest = in estate

Question 22

What is the order of distribution where there are no spouse or kids?

Answer 22

Goes to highest on the list

• parents
• siblings (whole)
• siblings (half)
• grandparents
• uncles and aunts (whole)
• uncles and aunts (half)
• crown

Question 23

Does the substitution limb apply to siblings?

Answer 23

Yes

Question 24

What are not chattels?

Answer 24

• money or securities
• property used solely or mainly for business
• property held as an investment

Question 25

How can the spouse get the house?

Answer 25

• has an option to buy
• must make an election in writing to PRs within 12 months of date of grant
• PRs cannot normally sell in this period.
• value of home is date of appropriation NOT date of death