SQE FLK 2 Wills and the Administration of Estates for SQE2 about:srcdoc
SQE FLK 2 Wills and the Administration
of Estates for SQE2
Where a person dies without a will so intestacy
What does intestacy mean?
rules apply to the entire succession estate
A deceased person’s will covers their entire
What does testacy mean?
succession estate and distribution
Where a deceased person’s will does not cover
their entire estate.
What is partial intestacy?
Will is followed for covered property and
intestacy rules cover remaining property
Statutory provisions in the Administration of
What are intestacy rules? Estates Act dictating who will receive the
(partially) intestate deceased’s property
Can you make a valid will by accident? No - it is a intentional act
What property does intestacy rules apply to? Any property capable of being left by will
Who holds the deceased person’s estate if Held on trust by PRs with power to sell
intestate? (statutory trust)
1. surviving spouse/civil partner
(everything if no issue)
2. issue (half if surviving 1. or everything if
no 1.)
3. parents
4. full siblings
What is the order of entitlement under the 5. half siblings
intestacy rules?
6. grandparents
7. full uncles and aunts
8. half uncles and aunts
9. Crown as bona vacantia
Divided equally amongst members of class once
they reach 18
1 of 74 01/09/2025, 10:08
,SQE FLK 2 Wills and the Administration of Estates for SQE2 about:srcdoc
Under intestacy rules, who does the estate go to They receive the entire estate if they survive
if there is a surviving spouse and no issue? their dead spouse by 28 days
For a spouse or civil partner to inherit, they must
What is the 28 day survivorship rule? survive the deceased by at least 28 days. If they
don’t, they’re treated as pre-deceased.
Under intestacy rules, who does the estate go to
The issue inherits the entire succession estate on
if there is no surviving spouse but there are
statutory trusts.
issue?
The estate is distributed to parents, siblings, or
Who inherits if a deceased person dies without a other relatives according to statutory trusts, or
spouse, civil partner, or issue? to the Crown as bona vacantia if no relatives
exist.
Surviving spouse: receives statutory legacy
Under intestacy rules, who does the estate go to (£322k), all personal chattel and 50% of residual
if there is a surviving spouse and issue? estate
Issue: 50% of the residue under statutory trusts
Anyone who is married to, or in a civil
partnership with the deceased at the time of
death.
• doesn’t include former spouses where
What is a spouse under AEA 1925?
divorce/dissolution has occurred
• if separated but still married - counts
(unless judicial separation)
• must outlive deceased by 28 days
All lineal descendants of deceased (genetic/
natural parent)
What is an issue under AEA 1925? • legitimate and illegitimate children
• adopted children
• surrogacy / artificial insemination
Imposed over estate and PRS/administrators -
What are statutory trusts (intestacy)? must follow terms of trust and no discretion to
alter
What are personal chattels? Tangible, movable property
What is not considered a personal chattel? • money or securities for money
• property used by intestate solely for
business
• property held solely as an investment
2 of 74 01/09/2025, 10:08
,SQE FLK 2 Wills and the Administration of Estates for SQE2 about:srcdoc
• Personal chattels
What does a surviving spouse receive under
• £322,000 of tax free statutory legacy
intestacy rules?
• Half of residue (if there is issue)
Fixed amount from the estate (currently
What is a statutory legacy?
£322,000)
Contingency limb: each entitled beneficiary
must outlive intestate and reach 18 to inherit
(once satisfied = vested). Until then, they only
What are the rules for a statutory trust? have a contingent interest
Substitution limb: if beneficiary pre-deceases,
their own issue can inherit if they satisfy
contingency limb
Applies to all classes (except parents and
Who do statutory trusts apply to in intestacy?
grandparents)
Dies before 18
What happens if a potential beneficiary in • if they have issue - they inherit share
intestacy dies before gift vests in them? • if no issue - treated as if beneficiary
never existed
1. DMC
2. Discretionary pension scheme benefits
3. Insurance policies written in trust with
named beneficiary
4. Statutory nominations (friendly society
not exceeding £5k)
What property passes outside intestacy?
5. JT co-ownership in homes and bank
accounts
6. Distribution of trust property
7. Life interest
8. Remainder interest (unless vested)
9. Discretionary trusts
1. gift must be made in contemplation of
imminent death
What is the criteria to satisfy a DMC? 2. gift is conditional on donor dying
3. donor parts with control of property by
handing it over etc.
3 of 74 01/09/2025, 10:08
,SQE FLK 2 Wills and the Administration of Estates for SQE2 about:srcdoc
Dependent on delivery
• handing over the title/title deeds would
work (unreg)
Can you make a gift of land under a DMC?
• handing over the keys is insufficient
Won’t work for registered land due to
registration issues.
Legal title in land was in name of deceased, but
all equity in the land was owned by someone
else.
What is a bare trustee?
Cannot pass into death estate. Legal title held by
PRs while arrangements are made to appoint
another bare trustee.
Automatically ceases on deceased’s death
What happens to property owned by the
intestate deceased as a beneficial life tenant? Passes to next person in the line under trust
terms
When is a life insurance policy included in the
If not written into trust
succession estate?
What happens to a life insurance policy if no the proceeds become part of the succession
beneficiaries are named? estate
Non-discretionary lump sump
When is a pension scheme paid into the
succession estate? HOWEVER, if a person is nominated to receive
the lump it is not included
Trustees can choose who the pension goes to -
What is a discretionary pension trust?
estate or a person nominated.
No, they do not as the benefits are released
Do discretionary pension scheme benefits form
upon production of a death certificate and are
part of the estate?
subject to trustee discretion
What happens to property held as JT if deceased Passes under survivorship so other beneficial JTs
is intestate? receive property
What happens to property held as TIC if • share passes into succession estate for
deceased is intestate? distribution
• spouse has no automatic right to receive
share
• can request PRs to appropriate home (or
deceased’s share)
• if requested, PRs must follow instruction
• spouse must give notice to PRs within
4 of 74
01/09/2025, 10:08
SQE FLK 2 Wills and the Administration
of Estates for SQE2
Where a person dies without a will so intestacy
What does intestacy mean?
rules apply to the entire succession estate
A deceased person’s will covers their entire
What does testacy mean?
succession estate and distribution
Where a deceased person’s will does not cover
their entire estate.
What is partial intestacy?
Will is followed for covered property and
intestacy rules cover remaining property
Statutory provisions in the Administration of
What are intestacy rules? Estates Act dictating who will receive the
(partially) intestate deceased’s property
Can you make a valid will by accident? No - it is a intentional act
What property does intestacy rules apply to? Any property capable of being left by will
Who holds the deceased person’s estate if Held on trust by PRs with power to sell
intestate? (statutory trust)
1. surviving spouse/civil partner
(everything if no issue)
2. issue (half if surviving 1. or everything if
no 1.)
3. parents
4. full siblings
What is the order of entitlement under the 5. half siblings
intestacy rules?
6. grandparents
7. full uncles and aunts
8. half uncles and aunts
9. Crown as bona vacantia
Divided equally amongst members of class once
they reach 18
1 of 74 01/09/2025, 10:08
,SQE FLK 2 Wills and the Administration of Estates for SQE2 about:srcdoc
Under intestacy rules, who does the estate go to They receive the entire estate if they survive
if there is a surviving spouse and no issue? their dead spouse by 28 days
For a spouse or civil partner to inherit, they must
What is the 28 day survivorship rule? survive the deceased by at least 28 days. If they
don’t, they’re treated as pre-deceased.
Under intestacy rules, who does the estate go to
The issue inherits the entire succession estate on
if there is no surviving spouse but there are
statutory trusts.
issue?
The estate is distributed to parents, siblings, or
Who inherits if a deceased person dies without a other relatives according to statutory trusts, or
spouse, civil partner, or issue? to the Crown as bona vacantia if no relatives
exist.
Surviving spouse: receives statutory legacy
Under intestacy rules, who does the estate go to (£322k), all personal chattel and 50% of residual
if there is a surviving spouse and issue? estate
Issue: 50% of the residue under statutory trusts
Anyone who is married to, or in a civil
partnership with the deceased at the time of
death.
• doesn’t include former spouses where
What is a spouse under AEA 1925?
divorce/dissolution has occurred
• if separated but still married - counts
(unless judicial separation)
• must outlive deceased by 28 days
All lineal descendants of deceased (genetic/
natural parent)
What is an issue under AEA 1925? • legitimate and illegitimate children
• adopted children
• surrogacy / artificial insemination
Imposed over estate and PRS/administrators -
What are statutory trusts (intestacy)? must follow terms of trust and no discretion to
alter
What are personal chattels? Tangible, movable property
What is not considered a personal chattel? • money or securities for money
• property used by intestate solely for
business
• property held solely as an investment
2 of 74 01/09/2025, 10:08
,SQE FLK 2 Wills and the Administration of Estates for SQE2 about:srcdoc
• Personal chattels
What does a surviving spouse receive under
• £322,000 of tax free statutory legacy
intestacy rules?
• Half of residue (if there is issue)
Fixed amount from the estate (currently
What is a statutory legacy?
£322,000)
Contingency limb: each entitled beneficiary
must outlive intestate and reach 18 to inherit
(once satisfied = vested). Until then, they only
What are the rules for a statutory trust? have a contingent interest
Substitution limb: if beneficiary pre-deceases,
their own issue can inherit if they satisfy
contingency limb
Applies to all classes (except parents and
Who do statutory trusts apply to in intestacy?
grandparents)
Dies before 18
What happens if a potential beneficiary in • if they have issue - they inherit share
intestacy dies before gift vests in them? • if no issue - treated as if beneficiary
never existed
1. DMC
2. Discretionary pension scheme benefits
3. Insurance policies written in trust with
named beneficiary
4. Statutory nominations (friendly society
not exceeding £5k)
What property passes outside intestacy?
5. JT co-ownership in homes and bank
accounts
6. Distribution of trust property
7. Life interest
8. Remainder interest (unless vested)
9. Discretionary trusts
1. gift must be made in contemplation of
imminent death
What is the criteria to satisfy a DMC? 2. gift is conditional on donor dying
3. donor parts with control of property by
handing it over etc.
3 of 74 01/09/2025, 10:08
,SQE FLK 2 Wills and the Administration of Estates for SQE2 about:srcdoc
Dependent on delivery
• handing over the title/title deeds would
work (unreg)
Can you make a gift of land under a DMC?
• handing over the keys is insufficient
Won’t work for registered land due to
registration issues.
Legal title in land was in name of deceased, but
all equity in the land was owned by someone
else.
What is a bare trustee?
Cannot pass into death estate. Legal title held by
PRs while arrangements are made to appoint
another bare trustee.
Automatically ceases on deceased’s death
What happens to property owned by the
intestate deceased as a beneficial life tenant? Passes to next person in the line under trust
terms
When is a life insurance policy included in the
If not written into trust
succession estate?
What happens to a life insurance policy if no the proceeds become part of the succession
beneficiaries are named? estate
Non-discretionary lump sump
When is a pension scheme paid into the
succession estate? HOWEVER, if a person is nominated to receive
the lump it is not included
Trustees can choose who the pension goes to -
What is a discretionary pension trust?
estate or a person nominated.
No, they do not as the benefits are released
Do discretionary pension scheme benefits form
upon production of a death certificate and are
part of the estate?
subject to trustee discretion
What happens to property held as JT if deceased Passes under survivorship so other beneficial JTs
is intestate? receive property
What happens to property held as TIC if • share passes into succession estate for
deceased is intestate? distribution
• spouse has no automatic right to receive
share
• can request PRs to appropriate home (or
deceased’s share)
• if requested, PRs must follow instruction
• spouse must give notice to PRs within
4 of 74
01/09/2025, 10:08
