PROPERTY DISTRIBUTION INTESTACY:
Testator = person who makes a will. Intestacy rules:
If the deceased made a valid will: he died testate. Terms of will s. 46(2A) AEA Did the deceased have a spouse
determine who inherits the succession estate. who survived them by 28 days?
If the deceased died without a valid will: he died intestate.
Administration of Estates Act 1925 Intestacy rules apply to inheritance. IF YES: Did deceased have an issue? IF NO: Did deceased have issue?
If a valid will doesn’t dispose of all possessions: partially intestate: YES: YES: Issue receives everything on
- follow the will for distributed property and Spouse receives: statutory trusts
- follow the intestacy rules for undisposed property. × Personal chattels = all tangible
movable property except: NO:
× cash, s. 46 AEA Whole estate passes as
Example: × assets used for business per statutory order, to:
Cassie’s will: I GIVE: the house I own to my sister Siobhan, the balance purposes and I. Parents
of my NatWest account to my nephew Sheamus, my piano to Mary. × assets held as investment Siblings of whole blood
Siobhan, Sheamus and Mary inherit as per the will. Cassie’s household II. Siblings of half blood
possessions are not disposed of, these will pass as per intestacy rules. × Statutory legacy of £250,000 III. Grandparents
× 1⁄2 of residue IV. Uncles/Aunts of whole
Residue = remaining succession blood o
SUCCESSION ESTATE: estate after deducting chattels V. Uncles/Aunts of half blood
(half-blood siblings of a
and statutory legacy.
parent) or
Succession estate = all of a person’s assets which pass on to successors VI. Crown (bona vacantia)
after death. Deceased’s personal representatives (PRs) administer the Issue receives:
Other 1⁄2 of the residue on statutory
estate. After paying debt and expenses, remaining assets are distributed. trusts Where a category of relative is
entitled e.g. siblings, estate is
To identify all assets, identify property that is excluded. NO: divided equally between them.
If not excluded = part of the succession estate. Spouse receives everything.
Excluded assets:
Issue = children and remoter linear descendents e.g. grandchildren and
None of the below excluded assets form part of the succession estate. includes adopted children.
Statutory nominations: Reference to marriage/spouse includes any person who has entered
Statutory nominations = nominations of up to £5,000 to transfer money into a heterosexual or same sex marriage or civil partnership.
held in friendly society bank accounts. Beneficiary receives the money.
If a clause in a will makes a gift conditional on getting/being married:
Donatio mortis causa (DMC): If the will was executed before 13 March 2014, marriage will refer to
DMC = gift made during donor’s lifetime in contemplation of and marriage of opposite sex couples only.
conditional upon death. Donor recovers the asset if he changes his mind. For a will executed on or after 13 March 2014, marriage will include
marriage of same sex couples.
Assets held in trust/settlement:
Original trust deed controls the destination of the property. Statutory trusts:
Life interest trusts: types of beneficiaries: s. 47 AEA Beneficiaries other than spouses or parents/grandparents take
- Life tenant with a life interest. Eg. income during lifetime their inheritance on the statutory trusts.
- Remainderman with a remainder/reversionary interest Eg.
receive capital when life tenant dies. The terms of the statutory trusts are:
(a) Beneficiaries must survive the intestate and reach 18 or marry
Pensions and policies written in trust: earlier to inherit. Until then, their interest is contingent but will
If a policy is written in trust the policy proceeds don’t form part of the receive both maintenance and accumulation of capital.
succession estate but the money is paid to the beneficiaries directly. If a beneficiary satisfies the requirement, they inherit absolutely
and their interest is vested.
Life insurance policies: (b) s.3 Estates of Deceased Persons Act 2011 If they die before their
Provider pays a lump sum to the deceased’s estate on death. interest vests, their share does not pass to their issues.
These policies are typically written in trust. Add substitution limb so that beneficiary’s issue can inherit if
beneficiary’s issue reach the age of 18 or marry earlier.
Discretionary Pension Schemes / Lump sum pension benefits:
If deceased nominated third party to receive the money or the Surviving spouse’s right to the family home:
policy written in trust, the beneficiary is paid and does not form
part of the succession estate. Intestate’s surviving spouse has right to possession of the family home.
But note: if lump sum is payable to PRs, then money forms part
of the succession estate. Sched 2 Intestate Estates Act 1952 This right must be exercised within
12 months of the grant of representation.
Property held as beneficial joint tenants:
Survivorship = if deceased and other(s) held property as beneficial joint If an intestate has a surviving spouse:
tenants, property passes to remaining joint tenant(s). But note: if × Where the family home was owned solely by deceased or held
property was held on beneficial tenancy in common, deceased’s share jointly as tenants in common, a surviving spouse can require the
will go to his succession estate. PRs to appropriate the family home for them to ensure they
remain in occupation. If spouse’s entitlement is worth less than
Joint bank accounts: Unless otherwise stated, deemed to be owned as property’s value, spouse must pay PRs the difference.
joint tenants (survivorship) and is outside the succession estate. × This is not possible if deceased owned the family home as
beneficial joint tenants with another, as property will pass via
Exercise - Succession estate: survivorship.
Emily Reid dies intestate. Emily held the below: Intestacy exercise:
1. House: owned by Emily and Charles as beneficial joint tenants.
2. Assets owned by Emily and Charles, beneficial joint tenants. Adam dies intestate. Adam was married to Brand and had three children,
3. Gallery owned by Emily and Ed, tenants in common, 50% share. Cedric, Denis and Edna. Edna is 17 and married, while Cedric has died
4. Discretionary Pension scheme nominated in favour of Charles. last year but he had two young children. Value of estate: £250,000 +
5. Life assurance payable to Emily’s estate. personal chattels. Who will inherit his estate?
Emily’s succession estate? Provided Brenda survived Adam by 28 days, she would be entitled to:
Items 1 and 2 - held on joint tenancy and pass directly to Charles as the • personal chattels
surviving joint tenant under the law of survivorship. Excluded from the • a statutory legacy of £250,000
succession estate. • one half of the residue
Item 4 - discretionary pension lump sum, is payable directly to husband
Charles as it was nominated for him and does not form part of the Adam’s 3 children, would be entitled to the other 1/2 of the residue on
succession estate. statutory trusts in equal shares i.e. 1/3 each of the half available. Their
Items 3 and 5 - included in the succession estate. Gallery is included as interests will be vested as they are all over 18 or married.
Emily had a 50% share.
Wills and Administration of Estates – All chapters – Revision notes | Page 1 of 8
Testator = person who makes a will. Intestacy rules:
If the deceased made a valid will: he died testate. Terms of will s. 46(2A) AEA Did the deceased have a spouse
determine who inherits the succession estate. who survived them by 28 days?
If the deceased died without a valid will: he died intestate.
Administration of Estates Act 1925 Intestacy rules apply to inheritance. IF YES: Did deceased have an issue? IF NO: Did deceased have issue?
If a valid will doesn’t dispose of all possessions: partially intestate: YES: YES: Issue receives everything on
- follow the will for distributed property and Spouse receives: statutory trusts
- follow the intestacy rules for undisposed property. × Personal chattels = all tangible
movable property except: NO:
× cash, s. 46 AEA Whole estate passes as
Example: × assets used for business per statutory order, to:
Cassie’s will: I GIVE: the house I own to my sister Siobhan, the balance purposes and I. Parents
of my NatWest account to my nephew Sheamus, my piano to Mary. × assets held as investment Siblings of whole blood
Siobhan, Sheamus and Mary inherit as per the will. Cassie’s household II. Siblings of half blood
possessions are not disposed of, these will pass as per intestacy rules. × Statutory legacy of £250,000 III. Grandparents
× 1⁄2 of residue IV. Uncles/Aunts of whole
Residue = remaining succession blood o
SUCCESSION ESTATE: estate after deducting chattels V. Uncles/Aunts of half blood
(half-blood siblings of a
and statutory legacy.
parent) or
Succession estate = all of a person’s assets which pass on to successors VI. Crown (bona vacantia)
after death. Deceased’s personal representatives (PRs) administer the Issue receives:
Other 1⁄2 of the residue on statutory
estate. After paying debt and expenses, remaining assets are distributed. trusts Where a category of relative is
entitled e.g. siblings, estate is
To identify all assets, identify property that is excluded. NO: divided equally between them.
If not excluded = part of the succession estate. Spouse receives everything.
Excluded assets:
Issue = children and remoter linear descendents e.g. grandchildren and
None of the below excluded assets form part of the succession estate. includes adopted children.
Statutory nominations: Reference to marriage/spouse includes any person who has entered
Statutory nominations = nominations of up to £5,000 to transfer money into a heterosexual or same sex marriage or civil partnership.
held in friendly society bank accounts. Beneficiary receives the money.
If a clause in a will makes a gift conditional on getting/being married:
Donatio mortis causa (DMC): If the will was executed before 13 March 2014, marriage will refer to
DMC = gift made during donor’s lifetime in contemplation of and marriage of opposite sex couples only.
conditional upon death. Donor recovers the asset if he changes his mind. For a will executed on or after 13 March 2014, marriage will include
marriage of same sex couples.
Assets held in trust/settlement:
Original trust deed controls the destination of the property. Statutory trusts:
Life interest trusts: types of beneficiaries: s. 47 AEA Beneficiaries other than spouses or parents/grandparents take
- Life tenant with a life interest. Eg. income during lifetime their inheritance on the statutory trusts.
- Remainderman with a remainder/reversionary interest Eg.
receive capital when life tenant dies. The terms of the statutory trusts are:
(a) Beneficiaries must survive the intestate and reach 18 or marry
Pensions and policies written in trust: earlier to inherit. Until then, their interest is contingent but will
If a policy is written in trust the policy proceeds don’t form part of the receive both maintenance and accumulation of capital.
succession estate but the money is paid to the beneficiaries directly. If a beneficiary satisfies the requirement, they inherit absolutely
and their interest is vested.
Life insurance policies: (b) s.3 Estates of Deceased Persons Act 2011 If they die before their
Provider pays a lump sum to the deceased’s estate on death. interest vests, their share does not pass to their issues.
These policies are typically written in trust. Add substitution limb so that beneficiary’s issue can inherit if
beneficiary’s issue reach the age of 18 or marry earlier.
Discretionary Pension Schemes / Lump sum pension benefits:
If deceased nominated third party to receive the money or the Surviving spouse’s right to the family home:
policy written in trust, the beneficiary is paid and does not form
part of the succession estate. Intestate’s surviving spouse has right to possession of the family home.
But note: if lump sum is payable to PRs, then money forms part
of the succession estate. Sched 2 Intestate Estates Act 1952 This right must be exercised within
12 months of the grant of representation.
Property held as beneficial joint tenants:
Survivorship = if deceased and other(s) held property as beneficial joint If an intestate has a surviving spouse:
tenants, property passes to remaining joint tenant(s). But note: if × Where the family home was owned solely by deceased or held
property was held on beneficial tenancy in common, deceased’s share jointly as tenants in common, a surviving spouse can require the
will go to his succession estate. PRs to appropriate the family home for them to ensure they
remain in occupation. If spouse’s entitlement is worth less than
Joint bank accounts: Unless otherwise stated, deemed to be owned as property’s value, spouse must pay PRs the difference.
joint tenants (survivorship) and is outside the succession estate. × This is not possible if deceased owned the family home as
beneficial joint tenants with another, as property will pass via
Exercise - Succession estate: survivorship.
Emily Reid dies intestate. Emily held the below: Intestacy exercise:
1. House: owned by Emily and Charles as beneficial joint tenants.
2. Assets owned by Emily and Charles, beneficial joint tenants. Adam dies intestate. Adam was married to Brand and had three children,
3. Gallery owned by Emily and Ed, tenants in common, 50% share. Cedric, Denis and Edna. Edna is 17 and married, while Cedric has died
4. Discretionary Pension scheme nominated in favour of Charles. last year but he had two young children. Value of estate: £250,000 +
5. Life assurance payable to Emily’s estate. personal chattels. Who will inherit his estate?
Emily’s succession estate? Provided Brenda survived Adam by 28 days, she would be entitled to:
Items 1 and 2 - held on joint tenancy and pass directly to Charles as the • personal chattels
surviving joint tenant under the law of survivorship. Excluded from the • a statutory legacy of £250,000
succession estate. • one half of the residue
Item 4 - discretionary pension lump sum, is payable directly to husband
Charles as it was nominated for him and does not form part of the Adam’s 3 children, would be entitled to the other 1/2 of the residue on
succession estate. statutory trusts in equal shares i.e. 1/3 each of the half available. Their
Items 3 and 5 - included in the succession estate. Gallery is included as interests will be vested as they are all over 18 or married.
Emily had a 50% share.
Wills and Administration of Estates – All chapters – Revision notes | Page 1 of 8
