Intestacy Rules

Introduction

Where a person dies **without a valid will**, or with a valid will that does not dispose of the **whole** of the estate, the undisposed-of property passes under the **intestacy rules**. These rules are found in the **Administration of Estates Act 1925 ('AEA 1925')**, as extensively amended — most recently by the **Inheritance and Trustees' Powers Act 2014 ('ITPA 2014')**. This chapter explains **total and partial intestacy**, the full **s.46 AEA 1925 order of entitlement** (with the current **£322,000** statutory legacy), the **statutory trusts** and **per stirpes** distribution under **s.47**, special issues (adopted, legitimated and step-children; the matrimonial home; survivorship; forfeiture), the **28-day rule**, and **bona vacantia**.

Assessment focus

For the SQE1 FLK2 assessment, you must be able to apply the **intestacy rules** to realistic client scenarios. You will be expected to identify **who is entitled** under the **s.46 AEA 1925** order, to calculate the **surviving spouse's or civil partner's** entitlement (**personal chattels + £322,000 statutory legacy + half of the residue absolutely**), to apply the **statutory trusts** and **per stirpes** rules to issue and other classes, and to spot the favourite traps — the **28-day survivorship rule** (which applies to the spouse/CP only), the exclusion of **cohabitants** and **unadopted step-children**, and the treatment of **adopted children**, **forfeiture** and **partial intestacy**. Questions are single-best-answer (SBAQ) and closed-book: you must recall the **current figures**, the **order of entitlement** and the **statutory references** from memory.

Study tips

1) Memorise the **spouse + issue formula**: **personal chattels + £322,000 statutory legacy (+ interest) + half of the residue absolutely**; the other half on **statutory trusts** for issue. 2) Remember that since **1 October 2014 (ITPA 2014)** a spouse/CP with **no issue** takes the **whole** estate — there is no longer a split with parents or siblings. 3) Learn the **s.46 order** in sequence: spouse/CP → issue → parents → whole-blood siblings → half-blood siblings → grandparents → whole-blood uncles/aunts → half-blood uncles/aunts → **bona vacantia**. 4) The **28-day rule (s.46(2A))** applies **only** to the spouse/CP — **never** to children or other relatives. 5) **Cohabitants and unadopted step-children take nothing** on intestacy — their only route is the **Inheritance (Provision for Family and Dependants) Act 1975**. 6) **Hotchpot was abolished** by the Law Reform (Succession) Act 1995 for deaths on or after **1 January 1996** — it does not apply on partial intestacy.