Distribution Under Intestacy vs A Will or Survivorship

a low. They welcome everybody. My name's after my mood and I'm very pleased to welcome you to today's bys. I session through data law today. Them going to be speaking to your body position with distribution on doing testes E versus A will or through survivorship and therefore really asking the question as to which one is better. So I'll be taken if food, their differences and distribution of estates depending upon whether somebody has made a will, for example, and therefore look at distribution, Andre will or if they have died intestate and we look at the position there, or if the property is in fact passing independently of the will on and testes, he provision on in particular. But take me through the statutory order insofar as in testis e is concerned, are supposed to answer the question which is which one is better and not really depends upon the particular circumstances on do. What you find with this is a lot really depends upon what the person person's intention is insofar as a distribution of their state on otherwise. So let me start with a wheel firstly and look at some of the benefits off making a will now will, of course, is a written declaration which sets out the intentions of the person making the will hand, which is to death take effect upon it. It can be revoked at any time before their deaths, in most cases. On it effectively, what you find is that her many people do not make wills and therefore, day property. The state will be dealt with and it by word of spy ship rules, which will look at shortly or indeed through in testis e. Now, if somebody was to die in a situation where you're looking to see whether they die, test 18 taste eight or partially intestate, it's important to appreciate and know what a difference between these are. Eso personally dies. Test state is one who has left a valid will on that will disposes of all of the assets which are capable being disposed under will case. That's one possibility, and that's where somebody may have gone to a lawyer or otherwise in the will has been prepared for them, which disposes of all of their state, which is capable being distributed for will a person dies intestate if to die with assets, great under some off their debt. Some fuel expenses without having made a will alway will has been made. But the person finds or just found it really is invalid. For some reason, it may be that the particular requirements were not met in so far as the will is concerned in terms of its execution or otherwise. So therefore, Dean Testes, he rules, will come into play now the if a person dies intestate, all the acid which is capable of being passing through will are instead inherited according to a set of stash to rules. And those enormous dean testes he rules on Daddy's are set out in the administration of the States at 1925 as amended. What do you mean them by? Somebody dies partially intestate with this is way if a person has left a valid will, But if it disposes some. But not all of this sees property which is capable being passing for will than that person has died intestate, partly intestate this Could we possibly due to the drafting of the world not having had been what he should have, bean. It may be that, say, a gift has been left to rescind your beneficiary, but that person is pretty. Sees a test state when there were no substitution of provision provided they fought. That gift has two laps and therefore you affording to in testis C. So that could be a number of reasons why the person may have died partially intestate on day for personalized partial intestate. Then he had any assets which are dealt with in the real off course. Determined therefore corn, what will provides. But the rest of it will be determined by what heard in testis he was provide. Now sometimes people will ask what the benefits of will on. Of course, there are many, many benefits, some being that when a person dies, the property, which they have therefore provided for in the will, will be distributed according to what they're provided for in the will Teoh an extent at so. For example, if a person wishes to benefit, say, a step child or maybe a co habitants, then one went. One way to do that, of course, is through a will because, as we'll see later, so the testes e provisions do not allow for distribution two step Children, for example, nor sort of cohabit t. If there's no we'll do, it may take longer, more costly, perhaps, for the probate lawyer to prove the estate indifferent to carry out the administer to process that could be an issue. Andi, also without a will in testis it provisions will not only deal with distribution, but also you've got D non contentious public rooms in 1987 which set out who will actually be responsible for administering the estate and it may be administrated through. The person may not have wanted to administer the estate for them. Making a will also enables a person to then deal with the effective tax planning and therefore with a view to making effective decisions. As far as planning on their death on also a will will enable people to, for example, make particular provision in relation to different types of gifts. That will look at a shortly that will also allows people to express a preference as to disposal of the body and burial arrangements and also the appointment of trustees. So I still India would trust accounts in that regard, so they are there for money. Many advances in effectively making the will. But I said a person has either made a will order haven't on different in testis it provisions come into play. There are certain types of properties which was parts independently of the will or in testis, he provision. Under first provisions here is jointly owned property and joint tenancy property. So if you imagine that the disease died owning a property which was held, let's say, as joint Council on Equity, then under the right of survivorship at the effect off the jointly owned properties that this passes on the matter automatically to the surviving joint turned or gentleman's on death off one or more off joint turns indoor circumstances effectively. If he had, say, husband, wife and day, they held the poverty the house as beneficial joint tenants in law or in equity, then upon survivorship. The beneficial joint tenancy would then be passing to the survivor indoor circumstances, irrespective off what was provided for in the will or through the intestine. See, provisions on this really is applicable to both legal on detectable joint. Hersi's on a purely legal joint. Tenancy in that regard also have the same effect. A beneficial joint tenancy have a maybe seven do in a lifetime of the joint tenant, but they cannot be seven by any disposition, but it will. So, for example, if her husband wife on the property jointly, it is possible to sever. That starts to convert that into a tenancy in common and therefore in turning to make a real source to leave their share to somebody else in no circumstances. Okay, so if there is no severance but a test ater but a death circular joint turned becomes the sole surviving and a well composed, the whole beneficial interest in the property to that survivor. Okay, there's also under position with nominations. So in the case of certain property mostly small monetary sovereignty, finding savings accounts and so forth, you find out these. That will mean that property we're not actually go through nomination dear. And therefore it won't pass through the will effectively to stash of provisions which allow these nominations applied to deposit which die exceed £5000 said that types off banks on that. There's also the position with insurance policies. For example, sort of insurance policies are payable on a policy where the estate has prepared this on their own life and therefore taken disposals off this body will, but the life policy would be kept for life assured, as the proceeds would then be paid at an event off them. Dying Go have been subject to, say, terminal killed critical illness, for example. But it's possible for the policy to be given to somebody and therefore effectively being nominated for indoor circumstances on there for the benefit that will actually them fall independently of the will when it tested. See provision. The same principle applies to pensions games. I saw that money pensions against provide for the painter benefits if the person dies whilst in service on. If a person was to nominate a person to benefit all circumstances, then such benefit would not belong to the person who was benefit under that well on testes E, but instead may well pass it. A person who has been nominated. This is very much arrive at the discretion of deep pension managers, but often you will find that they will give effect to at the provision that has been provided for their. So again, you can see that these are different types of properties, which therefore may pass in the penalty off the well, Woody and testes E provision. Now, as I mentioned, there are different types of gifts which one can make available for distribution through will. There's, for example, specific gifts, which is a gift of a particular item of property on buddy diseased, which can be used to distinguish on the rest of the state. It is possible to transfer. Distribute this in the world by way off a specific gift. There's also general legacies, for example, whereby girls and disposing of a particular gift. Instead, the person will make a general guest stars to leave that gift or some other gift representing that whether it be wide buy with cash otherwise upon death. On that is also, of course, the provision for residual gifts, which can be provided for in the well so that once or other gifts have been distributed, what is left and will be disposed off by way of arrested, reset your gift, the benefit or self. Of course, being able to make a will is one can make provision for the position with payment of debts and expenses and also inheritance tax. In terms of looking to see which of the beneficiaries are responsible for the inheritance tax. So when he comes to paint debts and expenses, for example, it is possible to determine by way of a clause in the will as to whether the burden of days to fall under person against the residue, for example, or whether it is to be charged on the persons who are again specific gifts, for example and that provision could be made for India, Chou will itself. We'll also allows for class gifts to be provided for so that it's possible for, say, the residue to be provided on shed between such a d Children off to test a toe may survive them and more than one in equal shares. So, for example, a test ator its plan to go and have more Children, for example, days possible to make a specific gift and so far is that provisions concerned so as to make a class gift. In the circumstances, the will itself can be used to make a gift Stupid reality, for example, Onda therefore, to enable a state to be passed through the will two particular charities indoor circumstances. As I mentioned, there is then also the third option, which is of course, through which property is distributed and that's through the process off in testis. See another mentioned early in testis is the process through which depopulate will not be distributed through a will or because the will may not have been created or the world is created. It is defective in somewhere and therefore the property will pass independently off the will and therefore through the testes. It provisions these air then set out within the administration of a state's at 1925 as amended as well as bite inheritance trustees Powers Act off 2000 and 14. So let's have a look see then who would benefit under in testis e and a lot really depends in terms of the person who will benefit a lot. Therefore depends upon the person's relationship with the deceased and also other relatives at the time. And the waiting testes he was provided for the immediate family are protected in the first instance and therefore the surviving spouse will save apart and then also the Children, indoor circumstances and people who do not form part of the disease family I have no right to in testis, he so therefore, call habitants co habitants would not benefit on the intestine. See Norwood, for example, Step Children, for example, on Section 46 of the administration of estates at 1925 sets at the categories of beneficiaries in order off priority. And therefore the Prince, for generally, is that the estate is shared by their relatives in the highest category, so that if Ford of reason, those parties cannot benefit, and only then would you go down further to category until the next person can claim and therefore would be eligible in those circumstances. So essentially looking at who would benefit first and foremost say, you got the husband who's died, survived by his wife and Children in those circumstances, the surviving spouse or surviving civil partner that would take priority over all the other categories of beneficiaries, although to survive its bounce for surviving save apartment off circumstances May we left. He shared of estate with other beneficiaries in that case, the Children. But if that person died having no survivors, Bassel registered civil partner, then the order beneficial entitlement is it will go to issue the disease, which are there for the Children of disease. But if they weren't not any, then it would go to parents. But if they did not survive to test a tonight, go to brother and sisters of the whole blood on if there are none then but insisted the whole blood on If Nandan grandparents. If no nunc was an answer, the whole blood and if non hunk was unanswered 1/2 blood and if not daughter, my little crown. Now, when one is looking at distribution to possibly brothers and sisters of the whole blood and on behalf blood also young was an answer to help a lot of heart blood. You would also be able to make provision for dead nephews and dear Children are either nephews and nieces and all circumstances also Andi, insofar as the position with Children of disease are concerned at, this would be such that the estate will be distributed between order Children, uh, living at the tater disease, death on huntress and mandate conceived but not born at a date off. Definitely intestate, and therefore they would also benefit on interest. Sort of beneficial is a contingent never conditional upon the may attain the age of 18 or Manning going to into a civil partnership earlier on differ from the age off 13. Okay, and issue includes here not just directly sentence immediate Children, but also grandchildren. So it will include, for example, Children, grandchildren, great grandchildren as well. So let's give an example whereby Sadie diseased husband died. Therefore survived by his wife, Children his brothers, sisters in, of course, Nancy's mother father on his grandparent's $9 circumstances, uh, the surviving spouse with and benefit together with the Children. So no circumstances he surviving spouse his wife would be entitled to depend personal chattels. Absolutely. So she would be getting too personal chattels of diseased indoor circumstances on their fall of those aspects. Check complains that Onda also, she would get a statue religous over £250,000 for your tax and costs with interest from the date of death until payment on, uh, what's left. And if anything, 1/2 of that will be provided to this past year that would then go to Children okay on that. The spouse in those circumstances does have a right to also required a personal representative. Steve appropriate the family home in total partners satisfaction of any interest she has in the estate. Okay, so that's the situation whereby the husband lease dies, leaving spouse and Children so effectively his wife will get too personal chattels. And then what's left. She will get £250,000 on what's left. After that, she will get half, and the rest will go to the Children. But where there are no we issued a surviving spouse, a registered civil partner would take everything, and nothing will go to the deceased parents, grandparents on course ants, brothers or sisters or nephews and nieces. Personal chattels that defined under Section three subsection one of D inheritance and trustee powers after 2014 on effectively diesel defined as tangible, movable property other than any public, which consists of money or securities from money or which was used for business purposes were used as an investment. So therefore include all other matters which disease had at the date of death mature, therefore going to be coming within the definition of personal chattels Now, where the, uh way we have a situation whereby Sadie disease died leaving no surviving spouse on issue indoor second dancer where the deceased died leaving to survive past. But the issue that we have to look see beauty issue are so therefore, this will include, like, say, Children, grandchildren, great grandchildren in that regard. But it does not include step Children off the intestate. So therefore, don't be direct descendants in that regard, but it does include those Children who were lawfully adopted by the deceased indoor circumstances. Now this is where Section 47 of the administration of estates at 1925 is important because the Children are there was living at a date of deceased or on drawn tress, and where I can see but not born as a date of the death of diseased. But there must have fulfilled a contingency of attaining the age of 18 with under 18 must be lawfully married or must have entered into civil partnership and therefore from the age of 16 if this has not occurred than they will not benefit. Okay, so it's very important. Therefore, bear this in mind. Children seized were therefore benefit, but it will be contingent upon them satisfying life of these events. Therefore, sometimes a question that's asked is what if the deceased charters pretty seized the disease but left their own issue that in those circumstances, the issue after disease condemn benefit from what the disease child apparent would have effectively had indoor circumstances, so that would be possible. OK on that. This is where it's important. Therefore, bear in mind that there's also the other issue, which is one of the deceased child had survived the diseased but himself later dies before they attain the age of 18 on. Murray went into a civil partnership at the age of 16. In the circumstances, there is provision provided for under section three of the estates of disease persons forfeiture rooms in the Law of Succession Act of 2011 which effectively provides data chart of disease, dies after the diseased without a tank of vested interest. But they themselves left issue. That child is treated as if thought of previous pretty sees that estates as intestate and different diseased. Okay, so the issue will benefit from their parents. Sharing those circumstances effectively saved the gift in those circumstances. Therefore, just to really pull this together, you can see that there is no therefore writer on dusty weather properties. They are going to be distributed to in testis, see through a will or through the spy ship principles, a lot therefore depends very much upon really what the particular circumstances are off the client on what they seek. As we've seen many properties on aspects that a practicum pastor, the will there's various properties which pass independent of the world and to test to see provisions I it always which jointly held ie through survivorship. Also through nomination as we mentioned lenders also estate torture passed through the intestine provision which may then work in favor of parties in certain situations. Gonna thank you very much for listening. Hope has been a useful by psy session for you and I speak to you next time. Thank you very much. Bye for now.