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Wills & Administration of Estates Crib Sheet
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Concise set of revision notes covering all the key details from the BPP SQE1 Wills & Administration of Estates module.
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SQE 1: Wills and Administration of Estates CRYPT SHEETContents
1. Intestacy & Succession
2. Wills: Validity
3. Wills: Drafting and Interpretation
4. Wills: Amendment and Revocation
5. Changes to estate distribution following death
6. Administration: Introduction
7. Administration: Personal Representatives
8. Administration: Grants of Representation
9. Administration: Application for a grant
10. Administration: Post-grant practice
11. IHT: The charge to IHT
12. IHT: Exemptions and relief
13. Tax planning and anti-avoidance
14. Professional Conduct
, Deceased has died ‘testate’ if the
will deals will ALL the
Intestacy & Succession deceased’s property. If the will
only deals with part of the
Is there a valid will? YES property = ‘partially intestate’
Intestate apply intestacy rules from
NO llllllll
Administration of Estates Act 1925:
Step 1: If there is a surviving spouse/civil partner, work out their entitlement first.
- N.B. Spouse/civil partner must survive deceased by at least 28 days! (s 462A AEA)
Step 2: If the deceased left issue, work out their entitlement (if any).
“Issue” = children and remoter linear descendants (e.g. grandchildren) & includes those who
are legitimate. illegitimate, legitimated, adopted + children conceived but not yet born.
KEY: Issue receive their inheritance on statutory trusts (s 47 AEA 1925)**
® If they do not survive, their OWN issue may still inherit under ‘substitution limb’
® If they do survive the deceased, they need to satisfy the ‘contingency limb’ before
obtaining a vested interest – i.e. reach age of 18!
**If an intestate leaves a spouse/civil partner AND issue, their entitlements are:
Spouse/civil partner Issue
Personal chattels absolutely Other half of the residue (if
any) on the statutory trusts
s 55 AEA 1925:“tangible movable property” but excludes:
1. Money or securities for money
2. Property used by the intestate at their death solely or
mainly for business purposes
3. Property held at the death solely as an investment
Statutory legacy of £322,000 free of tax and costs plus interest
from the date of death to the date on which payment is made.
One half of the residue (if any) absolutely.
Step 3: If the deceased did not leave a spouse or issue, identify who is next in the statutory
order and work out their entitlement (s 46 AEA 1925):
1. Parents
2. Siblings of whole blood on the statutory trusts
3. Siblings of half blood on the statutory trusts
4. Grandparents
5. Uncles & aunts of whole blood on the statutory trusts
6. Uncles & aunts of half blood on the statutory trusts
7. The crown as bona vacantia
*MORE than one person in the relevant category succession estate is divided equally*
,Assets NOT DISTRIBUTED under the will or intestacy rules – i.e. excluded from the
succession estate:
Donationes = a gift made in contemplation of death. A valid DMC has 3 requirements:
mortis causa
(DMC) 1. Donor believes they may die imminently of a particular cause.
2. Gift is conditional upon them dying
3. Donor either parts with the property or something representing ownership
Discretionary Many pension schemes allow contributors to ‘nominate’ a third party to receive
pension any benefits due after the contributor’s death (‘Expression of Wish’ form).
scheme
benefits - N.B. Nomination is not binding on the trustees but they usually comply
Benefit will be released upon the production of a death certificate.
Insurance KEY: Simple life insurance policy proceeds DO pass to the succession estate.
policies
BUT if the benefit of the policy was written in trust for ANOTHER person the
proceeds will not form part of the succession estate. THREE w
1. s.11 Married Woman’s Property Act 1882: benefit of spouse and/or children.
2. Expressly for the benefit of any nominated third party, e.g. grandchildren.
3. Into an existing trust for the benefit of the named beneficiaries
Benefits are released on production of a death certificate.
Statutory A person can make a nomination in any of the following accounts: Friendly
nominations Society, Industrial Society, OR Provident Society.
Amount nominated cannot exceed £5,000. On death, monies pass to the nominee.
Benefit will be released upon the production of a death certificate.
Beneficial co- 1) The family home
ownership
® Consider BOTH the legal ownership + equitable/beneficial ownership
® Usually, there is an express trust – look at register of title
® If there is no such express trust, there may still be an implied trust!
2) Bank accounts (Aroso v Coutts & Co.)
® Account holders = legal joint tenants.
® Express declaration will be conclusive.
® If there is no declaration of beneficial ownership, consider whether an
implied trust has arisen. Doctrine of presumed resulting trusts may apply.
Other If the deceased was a beneficiary under a trust, their beneficial interest will NOT
beneficial necessarily form part of their succession estate depends on the nature of the
interests in interest + whether it survives their death.
joint
property If the deceased was a life tenant under a life interest trust, their beneficial
life interest does not form part of their estate- it expires on their death
, In contrast, the remainder interest (the future right to receive trust capital)
can survive the remainderman’s death provided the remainder interest is
vested ‘in interest’
KEY: Assets held in trust are usually distributed in accordance w/ the terms of
the trust deed, not the will or application of intestacy rules
Exception = if a deceased (by will) exercises a power of appointment in
respect of trust assets
No specific wording or
form is required + has
testamentary freedom Wills: Validity
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