equity

Question 1

What is a will?

Answer 1

A legal declaration of a person’s wishes regarding disposal of their property after death

A will outlines how a person’s assets and estate should be distributed upon their passing.

Question 2

Who is a testator?

Answer 2

The person making the will

A testatrix refers to a female testator.

Question 3

What is intestacy?

Answer 3

When someone dies and some or all of their property is not distributed by a will

Question 4

Who is a Personal Representative (PR)?

Answer 4

Person(s) responsible for distributing the deceased’s estate

Question 5

How are marriage and civil partnership treated in relation to wills?

Answer 5

They are treated the same as legally recognized unions.

Question 6

What are the three requirements for a valid will?

Answer 6

• Testator has legal and mental capacity to make the will
• Testator intended to make a will
• The correct formalities are followed

Question 7

What is legal capacity in the context of a will?

Answer 7

The testator must be at least 18 years old

Question 8

What is mental capacity regarding wills?

Answer 8

The ability to understand the nature of making a will, the extent of property, and the claims to which the testator ought to give effect

Question 9

What is the common law test for mental capacity?

Answer 9

Banks v Goodfellow (1870)

Question 10

What does intention in the context of making a will refer to?

Answer 10

• General intention to make a will
• Specific intention to make that particular will

Question 11

What is an attestation clause?

Answer 11

A short statement in a will that confirms the will was signed and witnessed properly

Question 12

What is a codicil?

Answer 12

A formal variation of a will, referencing the original will and complying with formalities

Question 13

What is automatic revocation of a will?

Answer 13

Occurs on marriage or civil partnership (full revocation) and on divorce (partial revocation)

Question 14

What is ademption?

Answer 14

A specific legacy adeems if the asset is no longer owned by the deceased when they die

Question 15

What is lapse in the context of a will?

Answer 15

Occurs when a beneficiary dies before the testator

Question 16

What does the term ‘issue’ refer to in intestacy?

Answer 16

Direct descendants, including children, grandchildren, and great-grandchildren

Question 17

What is the effect of intestacy rules?

Answer 17

They apply to all property that is capable of being left by will and impose a trust over all property

Question 18

What is the statutory legacy for a surviving spouse under intestacy rules?

Answer 18

£322,000 or the entire sum if less is available

Question 19

What are the possible orders under the Inheritance (Provision for Family and Dependants) Act 1975?

Answer 19

• Lump sum payment
• Periodical payments
• Transfer of property
• Settlement of property on trust

Question 20

Who can apply under the Inheritance (Provision for Family and Dependants) Act 1975?

Answer 20

• Spouse/Civil partner
• Former spouse/civil partner (if not remarried)
• Child of the deceased
• Any person treated as a child
• Any person maintained by the deceased
• Cohabitants living with the deceased for two years

Question 21

What is the time limit for applying under the Inheritance (Provision for Family and Dependants) Act 1975?

Answer 21

Six months from the date of the grant of representation

Question 22

What is the basis for challenging a will?

Answer 22

Validity of the will or that the disposition does not make reasonable financial provision for the applicant

Question 23

What is the commorientes rule?

Answer 23

In cases of simultaneous death, the elder is deemed to die first

Question 24

What is the effect of a gift failing under a will?

Answer 24

The asset falls into the residue or passes via intestacy rules

Question 25

What is the definition of a devise?

Answer 25

A gift of real estate

Question 26

What is a pecuniary legacy?

Answer 26

A gift of cash

Question 27

Fill in the blank: A _______ is a gift of personal property.

Answer 27

legacy

Question 28

True or False: A witness to a will can also be a beneficiary.

Answer 28

False

Question 29

What is the definition of a mutual will?

Answer 29

Wills that are bound by a promise made by another person

Question 30

What is the rule regarding property owned jointly as a beneficial joint tenant?

Answer 30

It cannot be overridden by the will

Question 31

What happens if a will is destroyed on the same day as the testator's death?

Answer 31

It is considered revoked

Question 32

What is the status of cohabitants under intestacy rules?

Answer 32

They have no status

Question 33

What is required for alterations made to a will via manuscript amendments?

Answer 33

Must be made before the will is executed or must be attested after execution

Question 34

What is the significance of the year 1837 in the context of wills?

Answer 34

It is the year the Wills Act was enacted

Question 35

What are the statutory trusts?

Answer 35

Funds shared equally between children of the intestate

Question 36

What is the definition of 'children' in the context of intestacy?

Answer 36

Includes legitimate, illegitimate, and adopted children, but not stepchildren

Question 37

What is the legal effect of a disclaimer?

Answer 37

A beneficiary decides not to accept a gift

Question 38

What is the definition of a legacy?

Answer 38

A gift of personal property

Question 39

What is the amount of IHT payable on the man’s estate?

Answer 39

C - £133,600 ## Footnote Calculation: £660,000 - £10,000 (debts) = £650,000. PET used up £9,000 of NRB. Therefore, £316,000 x 0% and £334,000 x 40%.

Question 40

What must secured debts be paid from?

Answer 40

The property they're secured on (e.g., mortgage) ## Footnote A will can override this if it states otherwise.

Question 41

What are unsecured debts paid from?

Answer 41

* Property not disposed of in will (e.g., partial intestacy) * Then from residue

Question 42

If debts can’t be paid from residue, what is the order in which they are paid?

Answer 42

* Specific gift for debts * Property charged with debts * Pecuniary legacies (shared proportionately) * Specifically gifted property (rateably)

Question 43

Who administers the estate?

Answer 43

Personal Representatives

Question 44

What are the two types of Personal Representatives?

Answer 44

* Executors * Administrators

Question 45

What is the minimum number of administrators needed if there is a minor beneficiary or a life interest?

Answer 45

At least two administrators

Question 46

What is the maximum number of administrators allowed?

Answer 46

Four

Question 47

Who has the order of entitlement to administer an estate under intestacy?

Answer 47

* Surviving spouse or civil partner * Children of the deceased * Deceased’s parents * Deceased’s brothers and sisters of the whole blood * Deceased’s brothers and sisters of the half blood * Grandparents * Uncles and aunts * The Crown * A creditor of the deceased

Question 48

What are the key initial steps by Personal Representatives?

Answer 48

* Register death * Notify banks, insurers, HMRC, creditors * Safeguard and value assets * Liaise with beneficiaries * Pay IHT * Apply for Grant of Representation

Question 49

What is the definition of Grants of Representation?

Answer 49

Court document evidencing authority of PRs to administer estate

Question 50

What is the Grant of Probate used for?

Answer 50

Executors in a will

Question 51

What is the Grant of Letters of Administration used for?

Answer 51

Administrators in intestacy

Question 52

What must be included when applying for a Grant of Representation?

Answer 52

* IHT documentation (if applicable) * Any Will and any codicils with two copies * Official copy of death certificate * Probate fee

Question 53

What is the primary duty of Personal Representatives as per Section 25 Administration of Estates Act 1925?

Answer 53

* Duty to collect the deceased’s assets * Duty to administer the estate – pay debts and distribute assets

Question 54

What are Personal Representatives personally liable for?

Answer 54

Losses resulting from breach of duty

Question 55

What taxes are Personal Representatives liable for?

Answer 55

* Inheritance tax on freehold estate and JT’s * Income tax 20% * Dividends 8.75% * Capital gains (£6,000 exemption) 20% general, 28% for residential

Question 56

What does the Inheritance (Provision for Family & Dependents) Act 1975 require?

Answer 56

Wait six months from date of issue of Grant

Question 57

What must be done to protect Personal Representatives from claims?

Answer 57

* Advertise in London Gazette, local paper * Make land searches * Wait a minimum of two months before distributing estate

Question 58

What is a Benjamin Order?

Answer 58

A court order allowing distribution of the estate when a beneficiary is missing