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Intestacy Administration of Estates Act 1925 i. ii. iii.

s 33 imposes a trust over all property in respect of which a person dies intestate The PRs must pay funeral, testamentary and administrative expenses and debts The residuary estate is then distributed according to the rules under s 46

Rules of Distribution, s 46 A. the surviving spouse takes personal chattels absolutely; B. the spouse receives a ‘statutory legacy’ of £250,000 excluding tax and costs and subject to interest from date of intestate’s death until payment; the interest rate is the Bank of England rate that had effect at the end of the date of the intestate’s death; C. the residuary estate is then divided in half: a. half of the estate is held on trust for the spouse absolutely; b. the other half is held on the statutory trusts for the issue. If no spouse or civil partner, the residuary estate is divided as follows: a. b. c. d. e. f. g. h.

issue on the ‘statutory trusts’ parents brothers and sisters (whole-blood) on the ‘statutory trusts’ brothers and sisters (half-blood) on the ‘statutory trusts’ grandparents uncles and aunts (whole-blood) on the ‘statutory trusts’ uncles and aunts (half-blood) on the ‘statutory trusts’ bona vacantia – the Crown, Duchy of Lancaster or Duke of Cornwall.

Statutory Trusts i.

Beneficiaries must generally be living at the intestate’s death

ii.

The interests of children are contingent upon either: a. attaining the age of 18; or b. marrying or forming a civil partnership.

iii.

If a child of the intestate predeceased the intestate, then their children would take the share equally between them contingent upon the conditions at (ii) above.

iv.

If a child dies before satisfying the conditions at (ii) above then the gift will fail unless they leave their own issue whom were living at the time of intestate’s death (s 47 AEA 1925 as amended by s 3, Estates of Deceased Persons (…) Act 2011).

Other considerations i. ii. iii. iv.

The spouse must survive the intestate for 28 days or else, under the Law Reform (Succession) Act 1995, they are treated as having not survived the intestate If there are no issue, then the entire estate passes to the spouse absolutely Adopted children are legally treated as the children of the adopted parents The spouse may require appropriation of the matrimonial home in full/partial satisfaction of any absolute interest in the estate – must pay difference if higher...