WAE 1 - Succession Estate and Intestacy

Question 1

What is the succession/distribution estate?

Answer 1

Assets capable of passing under a will or by intestacy.

Question 2

What assets are not included in the succession estate?

Answer 2

• Donationes mortis causa (gift in contemplation of imminent death)
• Discretionary pension scheme benefits (e.g., employer’s discretionary pension)
• Insurance policies written in trust (e.g., life insurance written in trust for a beneficiary)
• Statutory nominations (e.g., friendly societies, cannot exceed £5000)
• Property held as beneficial joint tenants
• Certain beneficial interests under trusts

Question 3

When do life insurance policy proceeds form part of the succession estate?

Answer 3

When it is a simple life insurance policy not written in trust.

Question 4

What types of societies allow statutory nominations, and what is the limit?

Answer 4

• Friendly societies
• Industrial societies
• Provident societies

Limit is £5000.

Question 5

When is a trust fund included in the deceased’s taxable estate?

Answer 5

• If the deceased had a remainder interest, it forms part of the succession estate.
• If the deceased had a power of appointment, they may exercise it by will.

Question 6

What does a surviving spouse/civil partner receive under intestacy if the deceased had/have issue?

Answer 6

• Personal chattels
• Statutory legacy of £322,000
• Half of the residue
• The other half of the residue goes to issue (children, grandchildren, etc.) under statutory trusts.

Question 7

1. What happens if the issue predeceases the deceased? 2. How do issue inherit under intestacy?

Answer 7

• If a child predeceases the deceased, their issue (e.g., grandchildren) inherit under substitution limb of statutory trusts.
• The statutory trusts also require any issue to be an adult before their interest vests (contingency limb).

Question 8

If there is no spouse or issue, who inherits under intestacy?

Answer 8

• Parents
• Siblings of whole blood (on statutory trusts)
• Siblings of half blood (on statutory trusts)
• Grandparents
• Uncles & aunts of whole blood
• Uncles & aunts of half blood
• The Crown

Question 9

Must all beneficiaries survive the deceased by 28 days?

Answer 9

No, only spouse/civil partner must survive by 28 days. No such requirement for other beneficiaries.

Question 10

Is a separated but not divorced spouse entitled under intestacy?

Answer 10

Yes, they are still entitled.

Question 11

If multiple persons fall within the same entitlement category, how is the estate divided?

Answer 11

It is divided equally among them.

Question 12

Does a surviving spouse have an automatic right to the marital home?

Answer 12

• If the deceased was the sole owner of the home, or a beneficial tenant in common, the deceased’s interest will form part of the succession estate and will be distributed in accordance with intestacy rules.
• The spouse has no automatic right to receive the deceased’s share of the marital home.

Question 13

What are the conditions for a surviving spouse to buy the deceased’s share in the home?

Answer 13

• Must elect in writing within 12 months of the date of grant
• May pay the difference from personal funds
• Court consent needed if the property is part of a farm or business premises
• Personal Representatives (PRs) cannot sell during this period without spouse’s consent.