Introduction to intestacy

• What does the element "Introduction to Estates" explore?

  It explores the distribution of estates and how to identify the deceased’s succession estate.
• What does Section 3 of the Wills Act 1837 allow a person to do?

  It allows a person to devise, bequeath, or dispose of all real and personal estate by will.
• What must be considered to ascertain how a deceased's estate will pass?

  Whether the deceased left a valid will and the nature of the assets owned by the deceased.
• What is a person called if they leave a valid will?

  A testator.
• What happens if a deceased does not leave a valid will?

  The intestacy rules are followed to determine the distribution of the estate.
• What is meant by 'partial intestacy'?

  It occurs when the will does not cover the entire estate, leading to intestacy rules applying to the remaining property.
• What is the term for a person who dies without making a valid will?

  Intestate.
• Where can the intestacy rules be found?

  In the Administration of Estates Act 1925, as amended by the Inheritance and Trustees’ Powers Act 2014.
• In the example of Cassie, what happens to her personal possessions not mentioned in the will?

  They will pass in accordance with the intestacy rules.
• What types of property do not form part of the succession estate?

  Donationes mortis causa, discretionary pension scheme benefits, insurance policies written in trust, statutory nominations, and property held as beneficial joint tenants.
• What is a donatio mortis causa (DMC)?

  A gift made in contemplation of death.
• What are the three requirements for a valid DMC?

  The gift must be made in contemplation of death, be conditional upon dying, and the donor must part with the property or its representation.
• In the example of Kian, what happens to the watch if he recovers?

  Caitlyn must return the watch to Kian.
• How do discretionary pension scheme benefits affect the deceased's estate?

  Payments made by the trustees are not included in the deceased's estate for distribution purposes.
• What happens to the proceeds of a simple life insurance policy upon the death of the insured?

  The proceeds pass to the succession estate.
• What occurs if the benefit of an insurance policy is written in trust for another person?

  The proceeds do not form part of the succession estate and belong to the nominated beneficiaries.
• What is the maximum amount that can be nominated in certain accounts under statutory nominations?

  £5,000.
• What happens to the monies in the relevant accounts upon the death of the deceased?

  They pass to the nominee rather than under the will or intestacy of the deceased.
• How does property held as beneficial joint tenants pass upon the death of one tenant?

  It automatically passes to the other joint tenant(s) by survivorship.
• What happens to the share of a beneficial tenant in common upon their death?

  Their share passes into the succession estate.
• Why is it important to consider both legal and equitable ownership of land?

  Because legal owners may hold the land on trust for themselves or others, affecting distribution.
• What is the key English law authority on beneficial ownership of joint bank accounts?

  Aroso v Coutts & Co [2002] 1 All ER (Comm) 241.
• How does the beneficial interest of a deceased beneficiary under a trust affect their succession estate?

  It may not form part of the succession estate depending on the nature of the interest and whether it survives their death.
• What happens to the remainder interest upon the death of a remainderman?

  It passes to their estate if the remainder interest is vested 'in interest'.
• Why are assets held in a trust usually not included in a deceased's succession estate?

  Because they are distributed according to the terms of the trust deed, not the will or intestacy rules.
• What are the key distinctions between testate, intestate, and partially intestate deaths?

  • Testate: The deceased left a valid will that determines the distribution of their estate.
  • Intestate: The deceased died without a valid will, and intestacy rules apply to the entire estate.
  • Partially intestate: The will covers part of the estate, and intestacy rules apply to the remaining property.
• What are the main types of property that do not pass to the succession estate?

  • Donationes 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
• What is the process for distributing a deceased's estate?

  1. Determine if the deceased died testate, intestate, or partially intestate.
  2. If testate, follow the will.
  3. If intestate, apply intestacy rules.
  4. Identify the deceased's succession estate and consider any excluded assets.