© strawberrywaffles 2025
Succession estate EXCLUDES Taxable estate EXCLUDES
- Donationes mortis causa - Life interest trusts, where D is a life
- Discretionary pension scheme tenant, created inter vivos on/after
benefits 22 March 2006
- Beneficial interest under - Discretionary pension scheme
discretionary trust benefits
- Insurance policies / pension - Insurance policies / pension
schemes written in trust for a third schemes written in trust for a third
party party
o Payable as of right → - Remainder interests under life
included in succession interest trust, if life tenant is still alive
estate o If life tenant dies first,
- Statutory nominations (max £5k) remainder interest passes to
- Property (land/bank accounts) held remainderman and forms
as beneficial joint tenants part of their taxable estate
- Life tenant under life interest trust
- Beneficial interest subject to a claim Part of taxable estate:
(e.g. proprietary estoppel, resulting - Life tenant under will trust
trust, constructive trust) - Interest under joint tenancy
- Premiums on insurance policies
NB: if D is the remainderman, his remainder (possible to use “normal expenditure
interest passes onto the succession estate. out of income” exemption)
- GROBs
- Insurance policies/pension schemes
not nominated for someone else
SUCCESSION ESTATE EXCLUDES
Donationes mortis causa 3 conditions:
- Gift made as D believes they may die
imminently due to some specific cause
- Gift is conditional on D dying
- D parts with property or something representing
ownership of it (e.g. car keys)
o Registered land: Land Registry TR1
Discretionary pension scheme - Nomination (Expression of Wish) not binding
benefits
,© strawberrywaffles 2025
- Trustees may exercise discretion to pay
benefits to nominated beneficiary or PRs
- Benefits released upon production of death
cert
Insurance policies / pension Benefits released to nominated beneficiaries upon
schemes written in trust for a production of death cert
third party
Statutory nominations
Property held as beneficial joint Automatically passes to surviving joint tenant(s) by
tenants survivorship.
If order of death is uncertain, burden of proof on party
making the claim to prove who died first. If cannot
prove, statutory presumption that the oldest died
first.
Life tenant under life interest Life interest expires on D’s death.
trust Property passes to remainderman upon D’s death.
Intestacy rules
Value of succession estate = value before payment of debts.
Value of succession estate for distribution refers to value after payment of debts.
Distribution (s.46 AEA)
- Issue: children and remote linear descendants e.g. grandchildren
o Includes adopted children (step-children must be legally adopted)
o Includes children who are conceived but not yet born
o Once your biological child has been adopted by someone else, they are
no longer your child
- Spouse/civil partners must survive deceased by at least 28 days
- Divorced spouses are not entitled to anything
o Separated spouses are still entitled as per normal intestacy rules, even if
they have commenced divorce proceedings
Situation Rule
,© strawberrywaffles 2025
Spouse but no Succession estate held in trust for spouse absolutely
issue
Issue but no Succession estate held on statutory trusts for issue
spouse
Rules of statutory trusts:
o Issue must satisfy contingency limb (survive D & reach 18)
→ vested interest (inherits immediately & absolutely)
o If not, contingent interest which vests when issue turns 18
o If issue dies before D, substitution limb applies → issue’s
own issue inherits as long as contingency limb is fulfilled
Both issue & Spouse:
spouse - Personal chattels absolutely – all tangible movable property,
except (CSBI)
o Cash
o Securities for cash (e.g. mortgages)
o Property solely/mainly for business purposes
o Property held solely as an investment
- Statutory legacy (£322,000)
o Tax free
o Plus interest from death date to payment date
- Half of the residue (if any) absolutely
Issue: other half of the residue on statutory trusts
No issue & no Statutory order of entitlement (s.46 AEA 1925):
spouse 1. Parents
2. Whole blood siblings (share both parents) on statutory trusts
3. Half blood siblings (share one parent) on statutory trusts
4. Grandparents
5. Uncles and aunts of whole blood (whole blood siblings of
parent) on statutory trusts
6. Uncles and aunts of half blood (half blood siblings of parent)
on statutory trusts
7. The Crown as bona vacantia
Remember PSG: Parents → Siblings → Grandparents
, © strawberrywaffles 2025
Where there is more than one person in the relevant category, the
succession estate is divided equally.
*if parents were not married and one parent is not named on
the birth certificate, treated as if that side of the family does not
exist
Appropriation of marital home
Applies where marital home forms part of succession estate, i.e.
- D & spouse held beneficially as tenants in common, or
- D was the sole owner of the marital home
Spouse can make an election to appropriate the home in full or partial satisfaction of their
statutory entitlements
Procedure:
- Write to PRs within 12 months’ of date of grant
o During these 12 months, PRs cannot sell the home without spouse’s consent
- If entitlement under the intestacy rules is lower than the value they are appropriating
(e.g. where the home is the only/main asset of the estate), the spouse may pay the
difference using personal funds
o Home is valued on the date of appropriation
- Court’s permission required where the home is
o Part of a building owned by D, or
o Part of a farm or other business premises
Will validity
1. Testamentary capacity (presumed)
2. Knowledge & approval (presumed unless T is blind/illiterate, will is not signed by T
personally, or suspicious circumstances)
3. Formalities
Privileged wills: married minors, military personnel, sailors at sea
- Must have testamentary capacity
- Do not need to comply with s.9 Wills Act formalities
Succession estate EXCLUDES Taxable estate EXCLUDES
- Donationes mortis causa - Life interest trusts, where D is a life
- Discretionary pension scheme tenant, created inter vivos on/after
benefits 22 March 2006
- Beneficial interest under - Discretionary pension scheme
discretionary trust benefits
- Insurance policies / pension - Insurance policies / pension
schemes written in trust for a third schemes written in trust for a third
party party
o Payable as of right → - Remainder interests under life
included in succession interest trust, if life tenant is still alive
estate o If life tenant dies first,
- Statutory nominations (max £5k) remainder interest passes to
- Property (land/bank accounts) held remainderman and forms
as beneficial joint tenants part of their taxable estate
- Life tenant under life interest trust
- Beneficial interest subject to a claim Part of taxable estate:
(e.g. proprietary estoppel, resulting - Life tenant under will trust
trust, constructive trust) - Interest under joint tenancy
- Premiums on insurance policies
NB: if D is the remainderman, his remainder (possible to use “normal expenditure
interest passes onto the succession estate. out of income” exemption)
- GROBs
- Insurance policies/pension schemes
not nominated for someone else
SUCCESSION ESTATE EXCLUDES
Donationes mortis causa 3 conditions:
- Gift made as D believes they may die
imminently due to some specific cause
- Gift is conditional on D dying
- D parts with property or something representing
ownership of it (e.g. car keys)
o Registered land: Land Registry TR1
Discretionary pension scheme - Nomination (Expression of Wish) not binding
benefits
,© strawberrywaffles 2025
- Trustees may exercise discretion to pay
benefits to nominated beneficiary or PRs
- Benefits released upon production of death
cert
Insurance policies / pension Benefits released to nominated beneficiaries upon
schemes written in trust for a production of death cert
third party
Statutory nominations
Property held as beneficial joint Automatically passes to surviving joint tenant(s) by
tenants survivorship.
If order of death is uncertain, burden of proof on party
making the claim to prove who died first. If cannot
prove, statutory presumption that the oldest died
first.
Life tenant under life interest Life interest expires on D’s death.
trust Property passes to remainderman upon D’s death.
Intestacy rules
Value of succession estate = value before payment of debts.
Value of succession estate for distribution refers to value after payment of debts.
Distribution (s.46 AEA)
- Issue: children and remote linear descendants e.g. grandchildren
o Includes adopted children (step-children must be legally adopted)
o Includes children who are conceived but not yet born
o Once your biological child has been adopted by someone else, they are
no longer your child
- Spouse/civil partners must survive deceased by at least 28 days
- Divorced spouses are not entitled to anything
o Separated spouses are still entitled as per normal intestacy rules, even if
they have commenced divorce proceedings
Situation Rule
,© strawberrywaffles 2025
Spouse but no Succession estate held in trust for spouse absolutely
issue
Issue but no Succession estate held on statutory trusts for issue
spouse
Rules of statutory trusts:
o Issue must satisfy contingency limb (survive D & reach 18)
→ vested interest (inherits immediately & absolutely)
o If not, contingent interest which vests when issue turns 18
o If issue dies before D, substitution limb applies → issue’s
own issue inherits as long as contingency limb is fulfilled
Both issue & Spouse:
spouse - Personal chattels absolutely – all tangible movable property,
except (CSBI)
o Cash
o Securities for cash (e.g. mortgages)
o Property solely/mainly for business purposes
o Property held solely as an investment
- Statutory legacy (£322,000)
o Tax free
o Plus interest from death date to payment date
- Half of the residue (if any) absolutely
Issue: other half of the residue on statutory trusts
No issue & no Statutory order of entitlement (s.46 AEA 1925):
spouse 1. Parents
2. Whole blood siblings (share both parents) on statutory trusts
3. Half blood siblings (share one parent) on statutory trusts
4. Grandparents
5. Uncles and aunts of whole blood (whole blood siblings of
parent) on statutory trusts
6. Uncles and aunts of half blood (half blood siblings of parent)
on statutory trusts
7. The Crown as bona vacantia
Remember PSG: Parents → Siblings → Grandparents
, © strawberrywaffles 2025
Where there is more than one person in the relevant category, the
succession estate is divided equally.
*if parents were not married and one parent is not named on
the birth certificate, treated as if that side of the family does not
exist
Appropriation of marital home
Applies where marital home forms part of succession estate, i.e.
- D & spouse held beneficially as tenants in common, or
- D was the sole owner of the marital home
Spouse can make an election to appropriate the home in full or partial satisfaction of their
statutory entitlements
Procedure:
- Write to PRs within 12 months’ of date of grant
o During these 12 months, PRs cannot sell the home without spouse’s consent
- If entitlement under the intestacy rules is lower than the value they are appropriating
(e.g. where the home is the only/main asset of the estate), the spouse may pay the
difference using personal funds
o Home is valued on the date of appropriation
- Court’s permission required where the home is
o Part of a building owned by D, or
o Part of a farm or other business premises
Will validity
1. Testamentary capacity (presumed)
2. Knowledge & approval (presumed unless T is blind/illiterate, will is not signed by T
personally, or suspicious circumstances)
3. Formalities
Privileged wills: married minors, military personnel, sailors at sea
- Must have testamentary capacity
- Do not need to comply with s.9 Wills Act formalities
