Succession Estate Flashcards
What is NOT included in a succession estate?
- Donationes mortis causa
- Discretionary pension scheme benefits
- Insurance policies written in trust
- Statutory nominations (cannot exceed £5,000)
- Property held as beneficial joint tenants
- Some other beneficial interests under trusts (life interest but remainder interest is included if vested)
Under intestacy rules, where there is both a spouse and issue, how is the estate distributed?
Spouse
Personal chattels absolutely.
Statutory legacy of £322,000 free of tax and costs plus interest from the date of death to the date on which payment is made.
One half of the residue (if any) absolutely.
Issue
Other half of the residue (if any) on the statutory trusts.
What is spousal entitlement conditional on?
Surviving the deceased by 28 days
What happens if the issue does not survive the deceased?
If they do not survive the deceased, their own issue may still inherit their entitlement under the ‘substitution limb’ of the statutory trusts.
If they do survive the deceased, there is no requirement that they do so by 28 days, but they will need to satisfy the ‘contingency limb’ (reaching the age of 18) before obtaining a vested interest.
If there is no spouse or issue, who then inherits under the rules of intestacy?
Parents
Siblings of whole blood (share both parents) on the statutory trusts
Siblings of half blood (share one parent) on the statutory trusts
Grandparents
Uncles and aunts of whole blood (whole blood siblings of a parent) on the statutory trusts
Uncles and aunts of half blood (half blood siblings of a parent) on the statutory trusts
The crown as bona vacantia
Where there is more than one person in the relevant category (e.g. if the intestate is survived by both parents), the succession estate is divided equally.
What is excluded in the definition of chattel?
Money or securities for money
Property used by the intestate at their death solely or mainly for business purposes
Property held at the death of the intestate solely as an investment
Do spouses automatically inherit family homes?
No, but if they make an election to buy the property in writing to the PRs within 12 months of the date of grant the PRs cannot sell the home without the spouse’s consent. If they do not inherit enough, they must buy the property with their personal funds.
When is the right to appropriate restricted?
The consent of the court is required where the home is only part of a building owned by the deceased or when the home is part of a farm or other business premises.
