SECTION A: DISTRIBUTION OF PERSON’S PROPERTY ON DEATH
• 1) Did deceased die testate / intestate?
• 2) Nature of deceased’s assets?
o Succession/distribution estate: Assets capable of passing under a will/by intestacy
1.1 Testate/intestate
• Testator: Person who makes will
• Died testate: Valid will determines who inherits succession estate
• Intestate: Invalid will = intestacy rules apply
• Partially testate: If will ≠ dispose of all of succession estate, will + intestacy rules apply to leftover property
o A poorly drafted will may be valid
1.2 Identifying the succession estate
• Personal representatives (PR): Administers estate
o Out of succession estate, pays deceased’s debts/funeral/administrative expenses
o Distributes according to order of priority under will/intestate will
• 1) Identify property specifically excl., e.g.
o Property held as JTs
o Insurance policies written in trust
o Pension benefits
o Statutory nominations
o Donatio mortis causa (DMC)
o Trusts/settlements
• If ≠ specifically excl. = incl. in succession estate
1.2.1 Property held as beneficial JTs
• If held property as JTs = automatically passes to remaining JT upon death, b/c survivorship rule ≠ incl. in
succession estate
• If TIC = deceased’s share forms part of succession estate
1.2.2 Insurance policies written in trust
• Life assurance policy = pays monthly premium to policy provider, in return for lump sum to deceased’s estate
rd
• Insured person nominates 3 party to inherit lump sum
• If insurance policy written in trust ≠ incl. in succession estate
o Paid to specified beneficiaries in accordance w/ deceased’s terms + after showing death certificate
1.2.3 Discretionary Pension Schemes/Lump sum pension benefits
• If pension scheme terms:
o Oblige pension fund trustees to pay lump sum after death
§ If payable to PR = incl. in succession estate
rd
§ If deceased nominated 3 party to receive lump sum (/written in trust) = paid to specified
beneficiary after showing death certificate ≠ incl. in succession estate
o Discretion to pay lump sum after death
rd
§ Expression of Wish form: Deceased states who should receive ££ ∴ paid directly to 3 party (e.g.
spouse, children) ≠incl. in succession estate
1.2.4 Statutory nominations
• If written statutory nomination, ££ in friendly, industrial + provident society bank accounts = paid to specified
beneficiary ∴ will/intestacy rules ≠ apply
• Rare: Max. < £5k
1.2.5 Donatio mortis causa (DMC)
• DMC: Gift made during donor’s lifetime in contemplation + conditional upon donor’s death ≠incl. in
succession estate
• If changes mind, donor may recover asset
1.2.6 Trusts/settlements
• Assets in trusts/settlement ≠incl. in succession estate
o Deed that created trust controls distribution
• E.g. Life interest trust:
o 1) Life tenant: Income during lifetime
§ Life interest: Right to receive all income from trust fund during lifetime, e.g. rental income from
trust property
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• 1) Did deceased die testate / intestate?
• 2) Nature of deceased’s assets?
o Succession/distribution estate: Assets capable of passing under a will/by intestacy
1.1 Testate/intestate
• Testator: Person who makes will
• Died testate: Valid will determines who inherits succession estate
• Intestate: Invalid will = intestacy rules apply
• Partially testate: If will ≠ dispose of all of succession estate, will + intestacy rules apply to leftover property
o A poorly drafted will may be valid
1.2 Identifying the succession estate
• Personal representatives (PR): Administers estate
o Out of succession estate, pays deceased’s debts/funeral/administrative expenses
o Distributes according to order of priority under will/intestate will
• 1) Identify property specifically excl., e.g.
o Property held as JTs
o Insurance policies written in trust
o Pension benefits
o Statutory nominations
o Donatio mortis causa (DMC)
o Trusts/settlements
• If ≠ specifically excl. = incl. in succession estate
1.2.1 Property held as beneficial JTs
• If held property as JTs = automatically passes to remaining JT upon death, b/c survivorship rule ≠ incl. in
succession estate
• If TIC = deceased’s share forms part of succession estate
1.2.2 Insurance policies written in trust
• Life assurance policy = pays monthly premium to policy provider, in return for lump sum to deceased’s estate
rd
• Insured person nominates 3 party to inherit lump sum
• If insurance policy written in trust ≠ incl. in succession estate
o Paid to specified beneficiaries in accordance w/ deceased’s terms + after showing death certificate
1.2.3 Discretionary Pension Schemes/Lump sum pension benefits
• If pension scheme terms:
o Oblige pension fund trustees to pay lump sum after death
§ If payable to PR = incl. in succession estate
rd
§ If deceased nominated 3 party to receive lump sum (/written in trust) = paid to specified
beneficiary after showing death certificate ≠ incl. in succession estate
o Discretion to pay lump sum after death
rd
§ Expression of Wish form: Deceased states who should receive ££ ∴ paid directly to 3 party (e.g.
spouse, children) ≠incl. in succession estate
1.2.4 Statutory nominations
• If written statutory nomination, ££ in friendly, industrial + provident society bank accounts = paid to specified
beneficiary ∴ will/intestacy rules ≠ apply
• Rare: Max. < £5k
1.2.5 Donatio mortis causa (DMC)
• DMC: Gift made during donor’s lifetime in contemplation + conditional upon donor’s death ≠incl. in
succession estate
• If changes mind, donor may recover asset
1.2.6 Trusts/settlements
• Assets in trusts/settlement ≠incl. in succession estate
o Deed that created trust controls distribution
• E.g. Life interest trust:
o 1) Life tenant: Income during lifetime
§ Life interest: Right to receive all income from trust fund during lifetime, e.g. rental income from
trust property
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