Succession Estate

Question 1

What assets are included in the succession estate?

Answer 1

All assets owned by the deceased apart from:

• donations mortis causa
• discretionary pension scheme benefits
• insurance policies written in trust
• statutory nominations
• property held as beneficial joint tenants
• some other beneficial interests under trusts and property held in trusts

Question 2

What three elements are required for there to be a valid DMC?

Answer 2

1. Gift is made because donor believes they may die imminently of a particular cause
2. Donor makes it clear that the gift is conditional on them dying
3. Donor parts with the property or something representing it

Question 3

What is a discretionary pension scheme benefit?

Answer 3

Trustees of pension scheme has discretion over whether to make payment to third party nominated by the deceased.

Question 4

What is an insurance policy in trust?

Answer 4

Insurance policy must be written in trust for benefit of third party and be outside of succession estate.

Question 5

What are statutory nominations?

Answer 5

Nominations of less than £5,000 into an account of either Friendly Society, Industrial Society or Provident Society. On death of deceased money passes directly to nominee.

Question 6

Why does property held as beneficial joint tenants pass outside the succession estate?

Answer 6

The right of survivorship applies meaning the property automatically passes to the remaining joint tenants. Applies equally to interests in land, other tangible property and bank accounts.

Question 7

What beneficial interests in trust property fall outwith the scope of the succession estate?

Answer 7

Interests in trusts that are not yet vested in possession. So contingent interests or interests that expire on death will not normally pass.