Wills (Intestacy)

Question 1

What determines the rules for distribution of the succession estate?

Answer 1

Whether the deceased died testate, intestate, or partially intestate.

Question 2

What does ‘testate’ mean?

Answer 2

A valid will disposes of all property.

Question 3

What does ‘intestate’ mean?

Answer 3

No property is disposed of by a will; intestacy rules apply for the entire estate.

Question 4

What does ‘partially intestate’ mean?

Answer 4

Some, but not all, property is disposed of by will; intestacy rules apply to the rest.

Question 5

What does s.46 AEA state about entitlement to the estate?

Answer 5

**If survived by a spouse/civil partner and/or issue, only they are considered. **

If no spouse or issue, other relatives are considered.

Question 6

Intestacy

Who counts as ‘issue’?

Answer 6

• Children
• Grandchildren
• Legitimated and illegitimate children
• Children conceived but yet not born.

Question 7

Intestacy

If there is a spouse but no issue, who inherits the estate?

Answer 7

The spouse inherits the entire estate absolutely.

Question 8

How long must the spouse survive the deceased to inherit?

Answer 8

The spouse must survive by at least 28 days.

Question 9

Intestacy

What happens if there are only issue and no spouse?

Answer 9

The issue inherit the entire estate on statutory trust.

Question 10

Intestacy

What is the distribution when both a spouse and issue survive?

Answer 10

• The spouse gets personal chattels, a statutory legacy of £322,000, and half the residue.
• The issue get the other half of residue on statutory trust.

Question 11

What does s.462 AEA state about surviving the deceased?

Answer 11

The spouse must survive by 28 days to inherit; otherwise, intestacy rules apply as if there were no spouse.

Question 12

Intestacy

What does s.47 state about the issue’s entitlement?

Answer 12

• The issue inherit on statutory trust
• If they predecease the deceased, their issue may inherit under substitution limb but they will need to satisfy contingency limb to obtain a vested interest

Question 13

What is the contingency limb for for s.47 AEA

Answer 13

• The issue must reach 18 years of age to inherit absolutely.
• If under 18, they hold a contingent interest.
• Once they reach 18, their interest vests

This applies it all issue taking on statutory trust - whether directly

This applies it all issue taking on statutory trust - whether directly or under substitution limb

Question 14

What is the order of entitlement when no spouse or issue survives?

Answer 14

• Parents
• Siblings of whole blood
• Siblings of half blood
• Grandparents
• Uncles/aunts of whole blood,
• Uncles/aunts of half blood
• The Crown.

Question 15

If the s.46 Order of Entitlment is used, what happens if there is more than one person in the category (e.g. 2 siblings) … ?

Answer 15

The succession estate is divided equally between those in the category

Question 16

What does Schedule 2 of the Intestate Estates Act 1952 allow a spouse to do with the marital home?

Answer 16

The spouse can elect to appropriate the home in full or partial satisfaction of their statutory entitlement.

Question 17

What happens under the itnestacy rules if the married couple own the home as beneficial joint tenants?

Answer 17

The right of survivorship applies - it passes outside the succession estate.

Question 18

Intestacy

What must a spouse do to elect to appropriate the marital home if the deceased was sole owner, or beneficial tenant in common?

Answer 18

The spouse must submit an election in writing to the personal representative within 12 months of the date of the grant.

Simply, they have the right to ‘buy’ the share from the personal representative using the money they would have received from the estate

Question 19

How are debts and liabilities handled in succession estates?

Answer 19

Debts and liabilities are **deducted from the gross value **to calculate the net succession estate.

Before distribution!

Question 20

What happens to joint bank accounts in a succession estate?

Answer 20

Money in joint accounts automatically passes to the other owner by survivorship and does not enter the estate.

Question 21

How are beneficial interests in trusts handled?

Answer 21

Assets in trust are distributed according to the trust deed, not intestacy rules.

Question 22

How are adopted children considered in intestacy?

Answer 22

Adopted children are considered issue of their adoptive parents, but not of biological parents.

Question 23

What happens if an issue predeceases the deceased but has children?

Answer 23

The deceased issue’s children (grandchildren of the deceased) inherit their share under the substitution limb.

Question 24

Example: A succession estate consists of a house, household items, savings, shares, and current account totaling £1,240,000 gross. After deducting £10,000 in bills, what is the net value?

Answer 24

£1,230,000 net succession estate.

Question 25

Example: The succession estate is divided among three children. If one child is predeceased with two children, how is the estate split?

Answer 25

The two surviving children inherit a third each. The final third is split equally between the two grandchildren.

Question 26

What if two people leaving everything to eachother die and it is not possible to tell who died first?

Answer 26

Where two persons die in circumstances where it is not possible to tell who died first, the younger is deemed to survive the older