The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Intestacy occurs on death where:
the deceased did not make a valid Will
the Will was revoked (either expressly or by operation of law)
the Will does not dispose of all of the estate, or
all the beneficiaries predeceased the testator
A partial intestacy arises where there is a valid Will but it does not effectively dispose of all parts of the estate. This would happen where, for example, a residuary beneficiary has predeceased the testator and there is no effective substitutional gift. In a partial intestacy, the intestacy rules are applied to the intestate portion only.
The rules on this matter are set out in AEA 1925, s 46, as amended by the Inheritance and Trustees' Powers Act 2014. The rules may be set aside under an order of the court issued under the Inheritance (Provision for Family and Dependants) Act 1975. See the Court orders under the Inheritance Act 1975 guidance note.
The current rules, as described below, have been in force since 1 October 2014. Prior to that date, the structure of entitlement on intestacy was similar but certain thresholds and interests were more limited. It is noted below where the current provisions are different from the previous regime.
Property owned as a joint tenant does not devolve under the intestacy rules but passes to the surviving joint tenant under the survivorship principle. By contrast, the share in property owned as a tenant in common may be subject to the rules on intestacy.
If a person dies intestate, the way in which his property is to be distributed is determined by which relatives survive him. The rules vary according to whether he leaves a surviving spouse or civil partner, or issue. If he leaves neither spouse nor issue, remoter relatives inherit according to a strict order of priority.
A person may be disqualified from inheriting in certain circumstances:
an individual may not benefit under intestacy if he murdered the deceased
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
What is an accumulation and maintenance trust?An accumulation and maintenance (A&M) trust is a particular type of settlement intended to make provisions for children and young adults up to the age of 25. The key feature is that trustees are given discretion over how to use the income for the benefit
Personal representatives are responsible for finalising the deceased’s tax affairs. They must file outstanding tax returns and claim any repayments due.For many estates where the deceased’s tax was deducted under PAYE on pensions or employment, a refund is likely to arise because the deceased is
Where a donor has made a gift of property and continues to use or benefit (or may benefit) from that property in some way, he may have made a gift with reservation of benefit for the purposes of inheritance tax (IHT).However, this will not be the case where:•a donor makes a gift of cash and the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.