SQE1 - Solicitors Qualifying Examination Part 1 Wills and Estate Administration Questions and Answers — Questions and Answers
Question 1: A testator signs her will in her kitchen. A neighbour, who is a beneficiary, is present and signs as the first witness. The testator then takes the will to an adjacent room where another neighbour signs as the second witness. The first witness is not present when the second witness signs. What is the legal effect of this situation on the will?
- The will is valid, but the gift to the first witness fails.
- The will is invalid because a beneficiary cannot be a witness.
- The will is valid, and the gift to the first witness is unaffected.
- The will is invalid as it was not signed or acknowledged in the presence of two witnesses present at the same time. (Correct answer)
Correct answer: The will is invalid as it was not signed or acknowledged in the presence of two witnesses present at the same time.
Section 9 of the Wills Act 1837 requires the testator to sign or acknowledge their signature 'in the presence of two or more witnesses present at the same time'. As the two witnesses were not present together when the testator's signature was made or acknowledged, this fundamental requirement has not been met, rendering the entire will invalid. While it is true that a gift to a beneficiary who acts as a witness would fail under s15 of the Act, the failure to comply with the s9 presence requirement is a more fundamental flaw that invalidates the will itself.
Question 2: A man dies intestate in England, leaving an estate valued at £900,000. He is survived by his wife and his mother. He has no children. According to the intestacy rules, how will his estate be distributed?
- The wife receives all personal chattels, a statutory legacy of £322,000, and half of the remaining balance; the mother receives the other half.
- The wife receives the entire estate. (Correct answer)
- The wife and the mother will share the entire estate equally.
- The wife receives the first £500,000 and the mother receives the remainder.
Correct answer: The wife receives the entire estate.
Under the rules of intestacy (Administration of Estates Act 1925, as amended), where the deceased is survived by a spouse or civil partner but no children or other issue, the surviving spouse or civil partner inherits the entire estate absolutely. The rules that provide for a statutory legacy and a split of the residue only apply when the deceased is survived by both a spouse and issue.
Question 3: A widow dies leaving an estate worth £950,000. Her main residence within the estate is valued at £400,000. In her will, she leaves her entire estate to her adult son. Her husband died three years earlier, leaving his entire estate to her and having made no lifetime gifts. What is the total available Nil Rate Band (including any transferable and residence allowances) that can be set against her estate for Inheritance Tax purposes?
- £500,000
- £650,000
- £1,000,000 (Correct answer)
- £325,000
Correct answer: £1,000,000
The widow's estate can claim her own Nil Rate Band (NRB) of £325,000 and her own Residence Nil Rate Band (RNRB) of £175,000, as the main residence is being left to a direct descendant. Because her husband left his entire estate to her (an exempt transfer), his NRB and RNRB were unused and are fully transferable to her estate. This adds a further £325,000 (transferable NRB) and £175,000 (transferable RNRB). The total available allowances are therefore (£325,000 + £175,000) + (£325,000 + £175,000) = £1,000,000.
Question 4: A woman dies, leaving a valid will that leaves her entire estate to charity. Her partner of 15 years, with whom she lived and who was financially dependent on her, is left with nothing. What is the partner's most likely course of action?
- Challenge the will's validity on the grounds of undue influence by the charity.
- Make a claim for reasonable financial provision under the Inheritance (Provision for Family and Dependants) Act 1975. (Correct answer)
- Apply for a share of the estate under the rules of intestacy.
- He has no claim as he was not married to the deceased.
Correct answer: Make a claim for reasonable financial provision under the Inheritance (Provision for Family and Dependants) Act 1975.
The Inheritance (Provision for Family and Dependants) Act 1975 allows certain categories of people to claim against an estate if the will (or intestacy) fails to make 'reasonable financial provision' for them. A person who lived in the same household as the deceased as if they were a married couple for at least two years immediately before the death is an eligible applicant. Given the long-term cohabitation and financial dependency, the partner has a strong basis for a claim under this Act.
Question 5: Which of the following is a key requirement for a Deed of Variation to be effective for 'reading back' to the date of death for Inheritance Tax (IHT) and Capital Gains Tax (CGT) purposes?
- It must be approved by the High Court before being executed.
- It must be signed by all executors and every beneficiary named in the original will.
- It must be made in writing within two years of the date of death and contain a statement of intent for the relevant taxes. (Correct answer)
- It must be made within six months of the Grant of Probate being issued.
Correct answer: It must be made in writing within two years of the date of death and contain a statement of intent for the relevant taxes.
For a variation to be treated for IHT and CGT purposes as if it had been made by the deceased, several conditions must be met under s142 of the Inheritance Tax Act 1984 and s62 of the Taxation of Chargeable Gains Act 1992. The most critical requirements are that the variation must be made in writing, executed within two years of the deceased's death, and contain a clear statement that the parties intend for these sections to apply.
Question 6: Which of the following statements accurately describes the primary duty of Personal Representatives (PRs) when administering an estate in the UK?
- To follow the verbal instructions of the main beneficiaries to ensure family harmony.
- To invest the estate assets in high-growth funds to maximise the value for the beneficiaries.
- To collect the deceased's assets, pay all debts and liabilities, and distribute the net estate according to the will or intestacy rules. (Correct answer)
- To prioritise the payment of legacies to beneficiaries before settling any of the deceased's outstanding debts.
Correct answer: To collect the deceased's assets, pay all debts and liabilities, and distribute the net estate according to the will or intestacy rules.
The fundamental duty of Personal Representatives (executors or administrators) is to administer the estate correctly. This involves a clear process: first, to collect and get in all the assets of the deceased; second, to pay the funeral, testamentary, and administration expenses, along with all debts and liabilities; and finally, to distribute the net estate to the persons entitled to it, either under the terms of the will or the rules of intestacy.
SQE1 - Solicitors Qualifying Examination Part 1 Wills and Estate Administration Questions and Answers
A testator signs her will in her kitchen.
A neighbour, who is a beneficiary, is present and signs as the first witness.
The testator then takes the will to an adjacent room where another neighbour signs as the second witness.
The first witness is not present when the second witness signs.
What is the legal effect of this situation on the will?