Wills (Intestacy) Flashcards
What determines the rules for distribution of the succession estate?
Whether the deceased died testate, intestate, or partially intestate.
What is the forfeiture rule?
A person who has unlawfully killed another is barred from acquiring any benefit as a consequence of the killing, and all inheritance and other rights are normally forfeit
This applies to inheritence under the intestacy rules, by will and by survivorship.
What does ‘testate’ mean?
A valid will disposes of all property.
What does ‘intestate’ mean?
No property is disposed of by a will; intestacy rules apply for the entire estate.
What does ‘partially intestate’ mean?
Some, but not all, property is disposed of by will; intestacy rules apply to the rest.
What does s.46 AEA state about entitlement to the estate?
If survived by a spouse/civil partner and/or issue, only they are considered.
If no spouse or issue, other relatives are considered.
Intestacy
Who counts as ‘issue’?
- Children
- Grandchildren
- Legitimated and illegitimate children
- Children conceived but yet not born.
Intestacy
If there is a spouse but no issue, who inherits the estate?
The spouse inherits the entire estate absolutely.
How long must the spouse survive the deceased to inherit?
The spouse must survive by at least 28 days.
Intestacy
What happens if there are only issue and no spouse?
The issue inherit the entire estate on statutory trust.
Intestacy
What is the distribution when both a spouse and issue survive?
- 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.
What does s.462 AEA state about surviving the deceased?
The spouse must survive by 28 days to inherit; otherwise, intestacy rules apply as if there were no spouse.
Intestacy
What does s.47 state about the issue’s entitlement?
- 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
What is the contingency limb for for s.47 AEA
- 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
What is the order of entitlement when no spouse or issue survives?
- Parents
- Siblings of whole blood
- Siblings of half blood
- Grandparents
- Uncles/aunts of whole blood,
- Uncles/aunts of half blood
- The Crown.
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) … ?
The succession estate is divided equally between those in the category
What does Schedule 2 of the Intestate Estates Act 1952 allow a spouse to do with the marital home?
The spouse can elect to appropriate the home in full or partial satisfaction of their statutory entitlement.
What happens under the itnestacy rules if the married couple own the home as beneficial joint tenants?
The right of survivorship applies - it passes outside the succession estate.
Intestacy
What must a spouse do to elect to appropriate the marital home if the deceased was sole owner, or beneficial tenant in common?
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
How are debts and liabilities handled in succession estates?
Debts and liabilities are **deducted from the gross value **to calculate the net succession estate.
Before distribution!
What happens to joint bank accounts in a succession estate?
Money in joint accounts automatically passes to the other owner by survivorship and does not enter the estate.
How are beneficial interests in trusts handled?
Assets in trust are distributed according to the trust deed, not intestacy rules.
How are adopted children considered in intestacy?
Adopted children are considered issue of their adoptive parents, but not of biological parents.
What happens if an issue predeceases the deceased but has children?
The deceased issue’s children (grandchildren of the deceased) inherit their share under the substitution limb.
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?
£1,230,000 net succession estate.
Example: The succession estate is divided among three children. If one child is predeceased with two children, how is the estate split?
The two surviving children inherit a third each. The final third is split equally between the two grandchildren.
What if two people leaving everything to eachother die and it is not possible to tell who died first?
Where two persons die in circumstances where it is not possible to tell who died first, the younger is deemed to survive the older
What does s.47 AEA concern?
Substitution and Contingency rules relating to statutory trusts
What is the definition of chattel for intestacy?
What about busines property?
The definition includes tangible movable property
It excludes houses and land.
It excludes any type of property used solely or mainly for business purposes.
