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Question 1

What is a testator?

Answer 1

A person who dies leaving a valid will

Question 2

What is intestacy?

Answer 2

Dying without a valid will

Question 3

What happens in partial intestacy?

Answer 3

Intestacy rules apply to assets not covered by the will.

Question 4

What is a DMC?

Answer 4

Donatio Mortis Causa; a gift made in contemplation of death.

Question 5

Name one asset type excluded from the succession estate.

Answer 5

Any of these: DMC gifts, discretionary pension benefits, insurance policies in trust, assets with statutory nominations, or property held as beneficial joint tenancy.

Question 6

What are the three conditions for a valid DMC?

Answer 6

1. Made in anticipation of death.
2. Conditional upon death.
3. Ownership/representation of the gift is transferred.

Question 7

What is the key feature of discretionary pension scheme benefits regarding estates?

Answer 7

Trustees decide distribution; benefits are excluded from the estate.

Question 8

How do life insurance policies in trust affect the succession estate?

Answer 8

Proceeds go to named beneficiaries, bypassing the estate.

Question 9

What is the limit for statutory nominations on society accounts?

Answer 9

£5,000

Question 10

What happens to jointly owned property with joint tenants?

Answer 10

It passes automatically to the surviving co-owner(s).

Question 11

How does beneficial co-ownership apply to family homes?

Answer 11

Determining equitable ownership is crucial, even if the legal title is jointly held.

Question 12

Are bank accounts typically held as beneficial joint tenants?

Answer 12

Yes, unless declared otherwise.

Question 13

How are trust assets usually distributed?

Answer 13

According to the trust deed, not the will or intestacy rules

Question 14

What are the three scenarios regarding will existence?

Answer 14

Testate (will covers all), intestate (no will), partially intestate (will covers some)

Question 15

Which Act outlines the order of entitlement for an intestate estate?

Answer 15

Administration of Estates Act 1925 (s.46)

Question 16

Who is the sole relevant class for inheritance if the deceased has a surviving spouse or issue?

Answer 16

The spouse/civil partner and issue.

Question 17

What does ‘issue’ include in intestacy rules?

Answer 17

Children, grandchildren, and further descendants (including adopted, illegitimate, and posthumously born).

Question 18

What does a surviving spouse inherit if there is no issue?

Answer 18

The entire estate.

Question 19

What happens if there is issue but no surviving spouse?

Answer 19

The issue inherit the entire estate on statutory trusts.

Question 20

What are the components of a spouse’s entitlement when there is both a spouse and issue?

Answer 20

Personal chattels, a statutory legacy of £322,000 plus interest, and half of the remaining residue.

Question 21

What do the issue inherit when both a spouse and issue survive the deceased?

Answer 21

The other half of the residue on statutory trusts.

Question 22

How long must a spouse survive the deceased to inherit?

Answer 22

28 days

Question 23

What is the contingency limb of the statutory trusts?

Answer 23

Beneficiaries must reach 18 years old to inherit.

Question 24

What is the substitution limb of the statutory trusts?

Answer 24

If a beneficiary predeceases the intestate, their descendants can inherit if they reach 18.

Question 25

What is the order of entitlement in intestacy if there's no spouse or issue?

Answer 25

Parents, siblings (whole blood), siblings (half-blood), grandparents, uncles/aunts (whole blood), uncles/aunts (half-blood).

Question 26

What happens to the estate if there are no surviving relatives in an intestacy case?

Answer 26

It passes to the Crown as bona vacantia.

Question 27

Can a surviving spouse appropriate the marital home under intestacy?

Answer 27

Yes, in full or partial satisfaction of their entitlement.

Question 28

What is the time limit for a spouse to elect for appropriating the marital home?

Answer 28

12 months from the grant of administration.

Question 29

What if the marital home's value exceeds the spouse's entitlement in an appropriation?

Answer 29

They must pay the difference from personal funds.

Question 30

What is the most favorable class of title on the proprietorship register?

Answer 30

Title Absolute (Freehold or Leasehold)

Question 31

What does qualified title signify?

Answer 31

A specific defect in the title, such as missing deeds.

Question 32

When is possessory title granted?

Answer 32

When the proprietor has possession but lacks deeds or claims ownership via adverse possession.

Question 33

What is good leasehold title?

Answer 33

Given when there's no evidence of the landlord's title, often upgradeable.

Question 34

What should a buyer's solicitor do if the title is not absolute?

Answer 34

Report to the client, check lender requirements, advise on indemnity insurance, consider upgrading.

Question 35

What information might the proprietorship register reveal about co-owners?

Answer 35

It can list up to four individuals, LLPs, or companies as co-owners.

Question 36

Name three additional pieces of information found on the proprietorship register.

Answer 36

Price paid (if acquired after 1 April 2000), indemnity covenants, and restrictions.

Question 37

What is the defining feature of a fixed trust?

Answer 37

The settlor defines the exact entitlements of each beneficiary.

Question 38

Give two examples of fixed trusts.

Answer 38

Fixed share trusts (e.g., 60% for A, 40% for B) and life interest trusts.

Question 39

What distinguishes a discretionary trust?

Answer 39

Trustees have the power to decide how to distribute property among a class of beneficiaries.

Question 40

What rights do beneficiaries have in a discretionary trust before discretion is exercised?

Answer 40

They have no automatic right to the trust property.

Question 41

What is a power of appointment in the context of trusts?

Answer 41

It allows the donee to choose which individuals within a class will receive trust property.

Question 42

What's the difference between a fiduciary and a personal power of appointment?

Answer 42

Fiduciary (held by a trustee) requires periodic consideration, while personal (held by a non-trustee) does not

Question 43

Define a vested interest in trust law.

Answer 43

A current right to property, with the beneficiary's entitlement being certain.

Question 44

Distinguish between vested in possession and vested in interest.

Answer 44

Vested in possession: current right to enjoy property; Vested in interest: current right to future enjoyment

Question 45

What characterizes a contingent interest in trust law?

Answer 45

It depends on the occurrence of an uncertain future event.

Question 46

How does a gift-over clause affect an interest?

Answer 46

It makes the interest contingent, as it provides an alternative beneficiary if a condition is not met.

Question 47

What happens to income generated by trust property in a contingent interest scenario?

Answer 47

It is accumulated until the contingency is met, or it goes to an alternative beneficiary if the contingency fails.

Question 48

Explain the concept of fortuitous vesting.

Answer 48

An intended recipient gains legal title through becoming the personal representative of the donor's estate.

Question 49

What are the three conditions for fortuitous vesting to apply?

Answer 49

Immediate intention to gift, continuing intention until death, recipient becomes executor (or administrator).

Question 50

What is the key distinction between a DMC and a regular gift?

Answer 50

DMCs are conditional on the donor's death and made in contemplation of imminent death.