Estates Flashcards
common assets that do not form part of the succession estate?
- Donationes mortis causa
- Discretionary pension benefits
- Insurance policies in trust
- Statutory nominations
- Property held as beneficial joint tenants
- Certain trust interests
What are the three requirements for a valid Donationes Mortis Cause (DMC)?
1) Made in contemplation of death
2) Conditional on the donor dying
3) Delivery of the property or something representing title
Do DMCs form part of the succession estate?
No. If valid, the gift is complete upon death and is excluded from the estate.
Do discretionary pension scheme benefits form part of the estate?
No. Payment is at the trustees’ discretion and not a legal entitlement of the deceased.
What is the effect of an ‘Expression of Wish’ in pension schemes?
It is not binding, but trustees usually follow it. Any benefits paid do not form part of the estate.
When do insurance policy proceeds form part of the estate?
If not written in trust, the proceeds pass into the succession estate.
What is a statutory nomination and its effect?
A person nominates a recipient of up to £5,000 from Friendly, Industrial, or Provident Societies. These amounts pass outside the succession estate.
What happens to land owned as beneficial joint tenants on death?
It passes automatically to the surviving co-owner(s) by survivorship and does not enter the succession estate.
What happens to a share held as a tenant in common?
It forms part of the succession estate and passes under the will or intestacy rules.
Can registered land be held as tenants in common at law?
No. Legal title is always joint. Tenancy in common exists only at the equitable level.
How is beneficial ownership of land typically determined?
By an express trust (recorded in the register of title). If absent, implied trusts may be considered.
How are joint bank accounts treated on death?
Usually, the surviving account holder inherits the funds by survivorship unless there is evidence to the contrary.
What happens to a life interest under a trust when the beneficiary dies?
It ends, and the property vests in the remaindermen per the trust deed.
Can a remainder interest pass to a deceased’s estate?
Yes, if the interest is vested ‘in interest’ (i.e., not contingent).
