Created by The SQE Hub 2023
WILLS AND ESTATES
Testator/Testatrix = Person who makes a will.
If deceased makes a valid will: died testate. Terms of will determine who inherits the
succession estate.
If the deceased died without a valid will: died intestate.
Administration of Estates Act 1925 – Intestacy rules will apply to inheritance.
If a valid will does not dispose of all possessions: partially intestate:
- Follow the will for distributed property and
- Follow the intestacy rules for undisposed property.
SQE 1 Assessment specification: Property passing outside the estate
Joint property:
Life policies:
Pension scheme benefits:
Trust property:
NONE of the below form part of the succession estate, so are SPECIFICALLY EXCLUDED:
Property held as beneficial joint tenants:
Survivorship: On death of one joint tenant their interest passes by survivorship to the
surviving join tenant.
Doctrine of survivorship does not apply to tenancy of common – share of a tenant passes
under will (or intestacy rules).
- Incudes both property and joint bank accounts
Pensions and policies written in trusts:
If policy is written in trust the policy proceeds don’t form part of the succession estate but
the money is paid to named beneficiaries (or trustees for them) regardless of terms of will or
intestacy.
Insurance Policy: Benefit of a life assurance belongs to individual who takes out policy. On
death, policy matures and policy is paid out to deceased’s Personal Representatives (PR)
who distribute money according to will or intestacy rules.
Pension Benefits: If deceased nominated 3rd party to receive the money or the policy
written in trust, the beneficiary is paid and does not form part of the succession estate. But, if
sum is paid to PR’s then this forms part of the succession estate.
Trust Property:
If deceased had an equitable interest as a beneficiary of a trust – the original trust deed will
control the destination of the property.
- If deceased had any rights to trust property as a life tenant, property will pass to the
remainderman.
Donatio mortis causea: a gift made in contemplation of death – a deathbed gift. DMC must
be valid – all criteria must be there i.e.
- Made in contemplation of death
- Intention of the gift is that it effect after the donor dies
1
,Created by The SQE Hub 2023
- Gift is validly delivered.
SQE 1 Assessment specification: The Intestacy rules
s.46 of The Administration of Estates Act 1925:
2 main categories of beneficiary under intestacy:
1. Spouse/civil partner – who must live after the intestate dies for at least 28 days in
order to inherit. If divorced, they are no longer a spouse. Doesn’t include a cohabitee
either.
2. Issue – means children incl formally adopted children, children born out of wedlock
and surrogates, NOT stepchildren.
- If an intestate has a spouse/children, they will receive estate according to the
intestacy rules – see flowchart.
- If they don’t have any spouse, or child when they die, apply the statutory order –
see flowchart.
2
, Created by The SQE Hub 2023
3
WILLS AND ESTATES
Testator/Testatrix = Person who makes a will.
If deceased makes a valid will: died testate. Terms of will determine who inherits the
succession estate.
If the deceased died without a valid will: died intestate.
Administration of Estates Act 1925 – Intestacy rules will apply to inheritance.
If a valid will does not dispose of all possessions: partially intestate:
- Follow the will for distributed property and
- Follow the intestacy rules for undisposed property.
SQE 1 Assessment specification: Property passing outside the estate
Joint property:
Life policies:
Pension scheme benefits:
Trust property:
NONE of the below form part of the succession estate, so are SPECIFICALLY EXCLUDED:
Property held as beneficial joint tenants:
Survivorship: On death of one joint tenant their interest passes by survivorship to the
surviving join tenant.
Doctrine of survivorship does not apply to tenancy of common – share of a tenant passes
under will (or intestacy rules).
- Incudes both property and joint bank accounts
Pensions and policies written in trusts:
If policy is written in trust the policy proceeds don’t form part of the succession estate but
the money is paid to named beneficiaries (or trustees for them) regardless of terms of will or
intestacy.
Insurance Policy: Benefit of a life assurance belongs to individual who takes out policy. On
death, policy matures and policy is paid out to deceased’s Personal Representatives (PR)
who distribute money according to will or intestacy rules.
Pension Benefits: If deceased nominated 3rd party to receive the money or the policy
written in trust, the beneficiary is paid and does not form part of the succession estate. But, if
sum is paid to PR’s then this forms part of the succession estate.
Trust Property:
If deceased had an equitable interest as a beneficiary of a trust – the original trust deed will
control the destination of the property.
- If deceased had any rights to trust property as a life tenant, property will pass to the
remainderman.
Donatio mortis causea: a gift made in contemplation of death – a deathbed gift. DMC must
be valid – all criteria must be there i.e.
- Made in contemplation of death
- Intention of the gift is that it effect after the donor dies
1
,Created by The SQE Hub 2023
- Gift is validly delivered.
SQE 1 Assessment specification: The Intestacy rules
s.46 of The Administration of Estates Act 1925:
2 main categories of beneficiary under intestacy:
1. Spouse/civil partner – who must live after the intestate dies for at least 28 days in
order to inherit. If divorced, they are no longer a spouse. Doesn’t include a cohabitee
either.
2. Issue – means children incl formally adopted children, children born out of wedlock
and surrogates, NOT stepchildren.
- If an intestate has a spouse/children, they will receive estate according to the
intestacy rules – see flowchart.
- If they don’t have any spouse, or child when they die, apply the statutory order –
see flowchart.
2
, Created by The SQE Hub 2023
3
