Wills 4 Flashcards
When do the rules of intestate succession apply?
- The deceased died having made no will, or at least no valid will (a whole intestacy); or * The deceased’s will does not dispose of all of their property (a partial intestacy) because the gift of all or part of the residue fails.
What happens to the estate of the intestate before distribution?
- PRs hold the estate on trust with power to sell. * They must pay the funeral, testamentary, and administrative expenses, debts, and other liabilities from cash and the proceeds of sale of assets. * The residuary estate (what is left after all the liabilities and expenses have been discharged) is then to be shared among those entitled according to the statutory rules.
What do the rules of intestacy depend on?
Whether the deceased was survived by a spouse or civil partner. The spouse must survive the deceased by at least 28 days.| Section 46 Administration of Estates Act 1925
If there is a surviving spouse but no issue, what happens to the estate of the intestate?
Spouse is entitled to the entire estate.
W dies without having made a will. He was married to F for 50 years. They had no children. W had two brothers. Who inherits W’s estate?
F inherits the entire estate.
If there is a surviving spouse and issue, what happens to the estate of the intestate?
The spouse takes: * Personal chattels (tangible moveable property, other than money and other than assets used for business or held for investment purposes) absolutely;* £270,000; and * One-half of the residue absolutely. Note: they require the PRs to appropriate the matrimonial home (or the deceased’s interest in it) in partial or total satisfaction of their interest. If the property is worth more than their entitlement, they must pay over the difference (‘equality money’) to the estate. The deceased’s issue take:* the other half of the residue absolutely (held on trust for them until they are 18 if minors)
What is ‘equality money’ in the context of the matrimonial home passing under intestacy rules?
- The difference in value between the deceased’s entitlement in the estate and the property. * Equality money must be paid if the spouse requires the PRs to appropriate the matrimonal home to them if the property is worth more than what they are entitled to.
R died without a valid will. She was married to F. They had two children, E, aged 27, and O, aged 23. R’s estate comprised chattels worth £80,000 and other assets valued at £600,000. How is the estate divided?
Under the rules of intestacy, F is entitled to the chattels, £270,000, and 50% of £330,000 (£600,000 less £270,000). If R’s estate comprises an interest in the matrimonial home, this can be transferred to F in part or full satisfaction of his entitlement. The remaining 50% of the residue (after any inheritance tax due) is inherited equally by E and O.
If a person dies intestate and there is no surviving spouse, how is their estate divided?
There is a strict order of entitlement. Earlier classes take to the exclusion of later classes. As soon as a person falling into a particular category (for example, a sibling) is identified, the subsequent categories of persons are ignored, and anyone in the class takes equally (if they reach 18/marry before 18):* Issue of the intestate on statutory trusts; * Parents (equally if both alive); * Brothers and sisters of the whole blood (i.e. those who share the same parents as the deceased) on statutory trusts; * Brothers and sisters of the half blood (i.e. those who share only one parent with the deceased) on statutory trusts; * Grandparents (equally if more than one); * Uncles and aunts of the whole blood on statutory trusts; * Uncles and aunts of the half blood on statutory trusts; and * The Crown as ‘bona vacantia”
A dies. She was unmarried, had no children, and both her parents were dead. She is survived by her sister and a half brother (her mother had remarried and had a son by her second husband). How is A’s estate divided?
A’s estate will be inherited by her sister. The half brother receives nothing, being in a lower class of beneficiary.
A dies intestate. She was unmarried, had no children, and both her parents were dead. She is survived by her two sisters. How is A’s estate divided?
A’s estate will be inherited by her sisters in equal shares.
What are statutory trusts in the context of intestate succession?
- For all classes, other than parents and grandparents, a class member’s issue takes their parent’s share “per stirpes’ if the class member has predeceased (provided the issue attain 18 or marry earlier). * Per stirpes means ‘through the root’, and this term is used because children inherit through their parent’s share.
S dies without a valid will. He was divorced. He had three children: A, B, and C. A and B survived S, but C had died three years before. She had two children of her own, D and E. How is S’s estate divided?
S’s estate will be divided as follows: * One-third each to A and B; and * One-sixth each to D and E (that is, they inherit C’s share equally between them as her issue)
A died without a will, there is no surviving spouse and no children or surviving parents. A had three siblings but one of them died before the deceased leaving two children. How is A’s estate divided?
Each sibling would be entitled to one third. The deceased sibling’s one third would go to their children equally. So they would get one sixth each. In this way, nephews and nieces can be entitled to a share of the estate. If the deceased sibling had not left any issue of their own, then the two remaining siblings of the deceased would inherit half each.
When a potential beneficiary to a statutory trust is living at the intestate’s death but subsequently dies before attaining a vested interest, what happens their interest?
- If they don’t attain 18/marry earlier, their issue (if any) take their deceased parent’s share on statutory trusts. * If the potential beneficiary dies without issue, the estate will be administered as if that beneficiary had never existed.
