SQE1 Wills & Administration of Estates practice questions

Wills and the administration of estates is assessed in FLK2. It covers making a valid will, interpreting and revoking it, intestacy, administering an estate (grants of representation, collecting assets, paying debts and distributing what is left), claims by family and dependants, and inheritance tax. Key sources include the Wills Act 1837, the Administration of Estates Act 1925, the Inheritance (Provision for Family and Dependants) Act 1975 and the Inheritance Tax Act 1984. Every question below links to the source behind its answer.

Rules to remember

Shares in a company whose business is wholly or mainly dealing in land or securities or making or holding investments (such as property letting) are not relevant business property. Question L319

A PET becoming chargeable within seven years of death is taxed at the death rate, reduced by taper to 80%, 60%, 40% or 20% for gifts made 3-4, 4-5, 5-6 or 6-7 years before death. Question L318

On death, exempt gifts (e.g. to charity) are deducted, then the residence nil-rate band (home to direct descendants) and nil-rate band, with tax at 40% on the excess. Question L317

A beneficial joint tenant's interest passes by survivorship outside the will; a tenant in common's share passes under the will or intestacy. Question L316

PRs who advertise under s.27 Trustee Act 1925, allowing at least two months for claims, are not personally liable for claims of which they had no notice at distribution. Question L315

An executor who may wish to act later should have power reserved, with notice of the application given to them, rather than renounce, since a renunciation can be retracted only with leave. Question L314

Where a minor beneficiary or life interest arises, letters of administration must issue to at least two individuals or a trust corporation, unless the court allows a sole administrator. Question L313

Where no executor can prove, residuary legatees have priority under NCPR r.20(c) and take letters of administration with the will annexed. Question L312

A cohabitant needs two years' cohabitation immediately before death to claim under s.1(1)(ba), but may claim as a maintained dependant under s.1(1)(e), at the maintenance standard. Question L311

An Inheritance Act claim must be made within six months of the first grant of representation unless the court gives permission, although it may be made before a grant. Question L310

With no spouse, issue or parent, the estate passes on the statutory trusts for whole-blood siblings (including issue of a predeceased sibling) before half-blood siblings or grandparents. Question L309

Where an intestate leaves a spouse and issue, the spouse takes the chattels, the fixed net sum and half the balance; the issue take the other half on the statutory trusts. Question L308

A share of residue given to a named beneficiary as tenant in common lapses if they predecease the testator and, absent a s.33 exception, passes on partial intestacy. Question L307

Unless the will says otherwise, debts of a solvent estate fall first on undisposed property, then residue, then the fund for pecuniary legacies (which abate rateably), and only then on specific gifts. Question L306

A specific gift fails by ademption if its subject matter is not in the testator's estate at death, unless it has merely changed in name or form. Question L305

On divorce or annulment, unless the will shows a contrary intention, the former spouse is treated as having died on the date of dissolution for both appointments and gifts in the will. Question L304

Destruction revokes a will only if done by the testator, or by another person in the testator's presence and at their direction, with the intention to revoke. Question L303

An alteration made after execution has no effect unless executed like a will, except that original words which are no longer apparent are treated as removed. Question L302

Testamentary capacity is tested by Banks v Goodfellow: understanding the nature and effect of the will, the extent of the property and the claims of others, free from any disorder of mind distorting the dispositions. Question L301

A testator may sign alone and later acknowledge the signature to two witnesses present together; each witness must then sign in the testator's presence, but not necessarily in each other's. Question L300

A gift to an attesting witness or their spouse or civil partner is void, but the will remains valid. Question 08

On intestacy a spouse or civil partner who dies within 28 days of the intestate is treated as not having survived. Question 09

Marriage revokes a will under s.18(1) Wills Act 1837 unless the will shows it was made expecting marriage to a particular person and intending it not to be revoked, and that saving applies only on marriage to that person. Question 23

Unless the will shows a contrary intention, a gift to the testator's child or remoter descendant who dies first leaving issue passes to that beneficiary's issue living at the testator's death, in equal shares per stirpes. Question 37