Intestacy (4)

Question 1

What is the purpose of intestacy rules?

Answer 1

Intestacy rules are used to decide who is entitled to an individual’s property when they die without having disposed of it in a will.

Question 2

In what 3 situations do intestacy rules exist?

Answer 2

• where there is no will
• where there is a will, but for some reason it is invalid, or is valid but fails to dispose of all property
• where there is a valid will but it fails to dispose of the deceased’s estate, (partial intestacy)

Question 3

What property does intestacy rules apply to?

Answer 3

Any property capable of being left by will.

Question 4

The Statutory Trusts regarding wills and intestacy rules

Answer 4

Intestacy rules impose a trust over all the property in respect of which a person dies intestate. That property is held on trust by the PR’s.
The trust includes a power of sale.

Question 5

What is meant by spouse regarding intestacy rules?

Answer 5

The person that the deceased was legally married to at the time of their death. Regardless of whether they were split up, if they were still legally married, they were still the legal spouse.

Question 6

When can a former spouse be excluded from intestacy rules?

Answer 6

Only when there is a finalised legal divorce.

Question 7

What is meant by ‘issue’?

Answer 7

The direct descendants of the deceased.

Question 8

How is the residuary estate divided when there is a surviving spouse and issue

Answer 8

• Spouse receives personal chattels absolutely
• Spouse then receives tax free legacy of £270,000
• the rest of the residuary estate is split in half. One half is given to the spouse and the other half is held on trust for the issue.

Question 9

What is a primary beneficiary?

Answer 9

Primary beneficiaries are the children of the deceased who have a contingent interest of attaining the age of 18 or getting married before this age.
If any child predeceases the testator, their interest passes onto their issue, if not it falls back to the residue.

Question 10

How is the estate distributed if there is a surviving spouse but no issue?

Answer 10

The whole estate passes to the spouse regardless of the size.

Question 11

How is the estate distributed if there is no surviving spouse?

Answer 11

• issue on statutory trust
• parents, equally if both alive
• brothers and sisters of the full blood
• brothers and sisters of the half blood
• uncles and aunts of the whole blood
  -uncles and aunts of the half blood
  -the Crown, the Duchy of Lancaster, or the Duke of Cornwall.

Question 12

How are adopted children viewed?

Answer 12

They are seen as the issue of the deceased.