Chapter 5: property passing outside of the will or intestacy Flashcards
If an interest in property is owned as a beneficial joint tenant, what will happen to the interest on their death?
- The interest in property owned as a beneficial joint tenant will pass to the survivors
Applies to matrimonial home and bank accounts
Do life assurance policies form part of the deceased’s estate?
No, the policy belongs to the benefiary named in the policy under contract law and is payable directly to the beneficiary
Do pension scheme death benefits form part of the deceased’s estate?
- 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
Does property held in a National Savings Bank, friendly societies or in National Savings Certificates form part of the deceased’s estate?
- 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
How will life interests in trust property pass?
- According to the terms of the trust - not through the decendent’s will or intestacy
- Interests may be subject to inheritance tax
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
The asset will not belong to the deceased for succession purposes, but there will be tax consequences