Chapter 5: property passing outside of the will or intestacy Flashcards

1
Q

If an interest in property is owned as a beneficial joint tenant, what will happen to the interest on their death?

A
  • The interest in property owned as a beneficial joint tenant will pass to the survivors
    Applies to matrimonial home and bank accounts
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2
Q

Do life assurance policies form part of the deceased’s estate?

A

No, the policy belongs to the benefiary named in the policy under contract law and is payable directly to the beneficiary

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3
Q

Do pension scheme death benefits form part of the deceased’s estate?

A
  • Pension scheme death benefits may be subject to discretionary trusts, but the scheme member is normally permitted to make a non binding nomination of preferred recipient
  • In some cases, it will not be possible to nominate and the death in service benefit will form part of the estate for the will or intestacy rules
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4
Q

Does property held in a National Savings Bank, friendly societies or in National Savings Certificates form part of the deceased’s estate?

A
  • Such property can be transferred directly to chosen beneficiary by way of statutory nomination in writing
  • If a nomination has been made, the insitution must pay the investment to the chosen nominee provided it does not exceed £5,000
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5
Q

How will life interests in trust property pass?

A
  • According to the terms of the trust - not through the decendent’s will or intestacy
  • Interests may be subject to inheritance tax
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6
Q

If the donor has given something away but retained some benefit, what is the consequence?

E.g. Giving away house but continuing to live in it

A

The asset will not belong to the deceased for succession purposes, but there will be tax consequences

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