Intestacy

• What determines how to distribute the succession estate?

  Whether the deceased died testate, intestate, or partially intestate
• What does it mean if a deceased is testate?

  The deceased has left a valid will that deals with all property
• What happens if a deceased is intestate?

  None of their property is disposed of by will, and intestacy rules apply
• What does partially intestate mean?

  Some, but not all, property is disposed of by will
• What do personal representatives of an intestate deceased hold?

  Undisposed of property on trust with power to sell
• What is the basis for entitlement to the estate on intestacy?

  Which relatives survive the deceased
• What is the statutory order of entitlement based on?

  Section 46 AEA 1925
• Who do you consider first if the deceased is survived by a spouse or issue?

  Only the spouse or issue
• What does 'issue' refer to in intestacy rules?

  Children and remoter linear descendants
• What types of children are included in the definition of issue?

  Legitimate, illegitimate, legitimated, and adopted children
• What happens if the intestate leaves a spouse but no issue?

  The spouse inherits the entire succession estate absolutely
• What occurs if the intestate leaves issue but no spouse?

  The issue inherit the entire succession estate on statutory trusts
• How does the presence of both spouse and issue affect entitlement?

  It complicates the distribution based on the nature and value of the assets
• What is the requirement for a spouse's entitlement under intestacy rules?

  The spouse must survive the deceased by 28 days
• What happens if the spouse does not survive by 28 days?

  The rules apply as if the deceased was not survived by their spouse
• Is there a requirement for other beneficiaries to outlive the deceased by 28 days?

  No, only the spouse has this requirement
• What do issue take under intestacy rules?

  Their interests are taken on statutory trusts
• What is the contingency limb in the statutory trusts?

  Each beneficiary must survive the intestate and reach age 18 to inherit
• What happens if a beneficiary is already 18 when the intestate dies?

  They inherit absolutely and immediately
• What is the substitution limb in the statutory trusts?

  Beneficiary's own issue can inherit if the beneficiary dies before the intestate
• In Example 1, what does B inherit from A's estate?

  B inherits A's entire estate
• A dies intestate, leaving an estate of £500,000. A has no spouse but is survived by his daughter B (18). How much does his daughter inherit?

  £500,000
• In Example 3, what is the status of B's interest?

  B's interest is contingent upon reaching age 18
• In Example 4, how do B and C share A's estate?

  B and C share £250,000 each on statutory trusts
• A dies intestate, leaving an estate worth £500,000 (including personal chattels worth 10,000). A is survived by his spouse (B) and his daughter (C) (18). What is the spouses(B) entitlement?

  £99,000 as B receives personal chattels worth £10,000, a statutory legacy of £322,000, and half the residue
• In Example 6, how do B and D inherit from A's estate?

  B and D share the estate equally, with D's interest contingent on reaching age 18
• In Example 7, what do D and E inherit from A's estate?

  D and E inherit C's share via the substitution limb of the statutory trusts
• What is the order of entitlement if the intestate dies without leaving a spouse or issue?

  Parents, siblings of whole blood, siblings of half blood, grandparents, uncles and aunts of whole blood, uncles and aunts of half blood, and the crown
• In Example 1 of the distribution without spouse or issue, who inherits A's estate?

  B inherits the entire estate as the highest in the statutory order
• In Example 2 of the distribution without spouse or issue, who inherits D's estate?

  D inherits the entire estate as the highest in the statutory order
• In Example 3 of the distribution without spouse or issue, how do G and H inherit?

  G and H each receive a quarter of the estate
• What happens if there is more than one person in the relevant category of entitlement?

  The succession estate is divided equally among them
• What happens to the succession estate if the intestate is survived by both parents?

  The succession estate is divided equally.
• In Example 1, who inherits the entire estate when A dies intestate and is survived by mother B and sister C?

  B inherits the entire estate as the highest in the statutory order.
• In the case of H dying intestate, who inherits the estate?

  D inherits the entire estate under the intestacy rules.
• What happens to the entitlements of F and G in the case of H dying intestate?

  F and G have no entitlement because they are lower in the statutory order.
• In Example 2, who inherits D's estate when D dies intestate and is survived by brother F and children G and H?

  F has a vested interest in half the estate, while G and H take E's half share equally.
• What is the significance of the contingency limb in the distribution of D's estate?

  F is over 18, so the contingency limb is satisfied, giving him a vested interest.
• How is G's interest in the estate characterized?

  G has a contingent interest because they are under 18.
• What are the steps to distribute an intestate estate?

  1. If there is a surviving spouse, work out their entitlement first.
  2. If the deceased left issue, work out their entitlement (if any).
  3. If the deceased did not leave a spouse or issue, identify who is next in the statutory order and work out their entitlement.