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Inheritance and Trustees' Powers Act 2014

Sections26

Inheritance and Trustees' Powers Act 2014

2014 c. 16

An Act to make further provision about the distribution of estates of deceased persons and to amend the law relating to the powers of trustees.

Enacted[14th May 2014]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I11 Intestacy: surviving spouse or civil partner

1 Section 46 of the Administration of Estates Act 1925 (succession to real and personal estate on intestacy) is amended as follows.
2 For the Table in paragraph (i) of subsection (1) substitute—
3 For subsection (1A) substitute—
4 After subsection (4) insert—

I22 The fixed net sum

1 In the Administration of Estates Act 1925, after the First Schedule insert the Schedule set out in Schedule 1 to this Act (which provides for the determination of the fixed net sum).
2 The Family Provision Act 1966 is repealed.

I33 Definition of “personal chattels”

1 For paragraph (x) of section 55(1) of the Administration of Estates Act 1925 (definitions) substitute—
.
2 If a will or codicil containing a reference to personal chattels defined (in whatever form of words) by reference to section 55(1)(x) of the Administration of Estates Act 1925 was executed before the coming into force of subsection (1), then unless the contrary intention appears subsection (1) is to be disregarded in interpreting the reference to personal chattels.

I44 Adoption and contingent interests

1 In section 69 of the Adoption and Children Act 2002 (rules of interpretation for instruments concerning property), in subsection (4)—
a omit “or” after paragraph (a), and
b after paragraph (b) insert
2 The amendments made by subsection (1) have effect only in relation to adoptions whose date is the day this section comes into force or later.

I55 Presumption of prior death

In section 18 of the Family Law Reform Act 1987 (succession on intestacy), after subsection (2) insert—

I256 Amendments of Inheritance (Provision for Family and Dependants) Act 1975

Schedule 2 amends the Inheritance (Provision for Family and Dependants) Act 1975.

I267 Date when representation is first taken out

Schedule 3 amends enactments relating to the determination, for various purposes, of the date on which representation with respect to the estate of a deceased person is first taken out.

I68 Power to apply income for maintenance

In section 31 of the Trustee Act 1925 (power to apply income for maintenance and to accumulate surplus income during a minority), in subsection (1)—
a in paragraph (i) for “as may, in all the circumstances, be reasonable,” substitute “ as the trustees may think fit, ” and
b omit the words from “Provided that” to the end.

I89 Power of advancement

1 Section 32 of the Trustee Act 1925 (power of advancement) is amended as follows.
2 In subsection (1), in the words before the proviso—
a after “subject to a trust,” insert “ or transfer or apply any other property forming part of the capital of the trust property, ” and
b after “payment” insert “ , transfer ”.
3 In subsection (1), in paragraph (a) of the proviso—
a for the words from the beginning to “amount” substitute “ property (including any money) so paid, transferred or applied for the advancement or benefit of any person must not, altogether, represent more than ”, and
b omit “one-half of”.
4 In paragraph (b) of that proviso for “the money so paid or applied” substitute “ the money or other property so paid, transferred or applied ”.
5 In paragraph (c) of that proviso—
a after “payment” (in both places) insert “ , transfer ”, and
b for “paid” substitute “ or other property paid, transferred ”.
6 After subsection (1), insert—

I710 Application of sections 8 and 9

1 Section 8 applies in accordance with subsections (4) and (5).
2 Section 9, apart from subsection (3)(b), applies in relation to trusts whenever created or arising.
3 Section 9(3)(b) applies in accordance with subsections (4) and (5).
4 Subject to subsection (5), the provisions mentioned in subsections (1) and (3) apply only in relation to trusts created or arising after the coming into force of those provisions.
5 Those provisions also apply in relation to an interest under a trust (not falling within subsection (4)) if the interest is created or arises as a result of the exercise, after the coming into force of those provisions, of any power.

I2711 Minor and consequential amendments

Schedule 4 makes minor and consequential amendments.

12 Short title, commencement, application and extent

1 This Act may be cited as the Inheritance and Trustees' Powers Act 2014.
2 This section comes into force on the day on which this Act is passed, but otherwise this Act comes into force on such day as the Lord Chancellor may by order made by statutory instrument appoint.
3 An order under subsection (2) may appoint different days for different purposes.
4 The provisions of this Act, except sections 4 and 8 to 10, apply only in relation to deaths occurring after the coming into force of the provision concerned.
5 Subject to subsection (6), this Act extends to England and Wales only.
6 The repeals made by paragraph 4 of Schedule 4 extend to the United Kingdom.

SCHEDULES

I9SCHEDULE 1 

Determination of the fixed net sum

Section 2

The following is the Schedule inserted after the First Schedule to the Administration of Estates Act 1925—

SCHEDULE 2 

Amendments of Inheritance (Provision for Family and Dependants) Act 1975

Section 6

I281The Inheritance (Provision for Family and Dependants) Act 1975 is amended as follows.

Children of the family

I112
1 Section 1 (application for financial provision from deceased's estate) is amended as follows.
2 In subsection (1)(d), for the words from “who” to the end substitute “ who in relation to any marriage or civil partnership to which the deceased was at any time a party, or otherwise in relation to any family in which the deceased at any time stood in the role of a parent, was treated by the deceased as a child of the family; ”.
3 After subsection (2) insert—

Maintenance

I123In section 1 (application for financial provision from deceased's estate), for subsection (3) substitute—

Powers of court

I134
1 Section 2 (powers of court to make orders) is amended as follows.
2 In subsection (1), at the end insert—
3 After subsection (3) insert—

Matters to which court is to have regard

I145
1 Section 3 (matters to which court is to have regard when exercising powers under section 2) is amended as follows.
2 In subsection (2), at the end of each of the final two sentences insert “ ; but nothing requires the court to treat such provision as setting an upper or lower limit on the provision which may be made by an order under section 2. ”
3 In subsection (3)—
a for paragraph (a) substitute—
;
b in paragraph (b) for “assuming and discharging that responsibility” substitute “ maintaining or assuming responsibility for maintaining the applicant ”.
4 In subsection (4), for the words from “regard” to the end substitute

Time limit for applications

I156In section 4 (time-limit for applications), at the end insert “ (but nothing prevents the making of an application before such representation is first taken out) ”.

Joint tenancies

I167
1 Section 9 (property held on joint tenancy) is amended as follows.
2 In subsection (1)—
a omit the words from “, before the end” to “first taken out,” and
b omit “, at the value thereof immediately before his death,”.
3 After subsection (1) insert—

SCHEDULE 3 

Determination of date when representation is first taken out

Section 7

I181In section 31 of the Matrimonial Causes Act 1973 (variation, discharge, etc, of certain orders for financial relief), for subsection (9) substitute—
I172For section 23 of the Inheritance (Provision for Family and Dependants) Act 1975 (determination of date on which representation was first taken out) substitute—
I193In section 20 of the Administration of Justice Act 1982 (rectification of wills), for subsection (4) substitute—
I204
1 Schedule 1 to the Children Act 1989 (financial provision for children) is amended as follows.
2 In paragraph 7 (variation of orders for secured periodical payments after death of parent), for sub-paragraph (6) substitute—
3 In paragraph 11 (alteration of maintenance agreements after death of one of the parties), for sub-paragraph (4) substitute—
I215In Schedule 5 to the Civil Partnership Act 2004, in paragraph 60 (variation of secured periodical payments order where person liable has died), for sub-paragraph (6) substitute—

SCHEDULE 4 

Minor and consequential amendments

Section 11

Administration of Estates Act 1925

I101
1 The Administration of Estates Act 1925 is amended as follows.
2 Omit section 46(3) (which relates to deaths in circumstances where it is uncertain which of two people survived the other).
3 Omit section 47A (right of surviving spouse to have own life interest redeemed).
4 In section 48 (powers of personal representative in respect of interests of surviving spouse), in subsection (2), omit the following—
a paragraph (b), and the word “and” after paragraph (a), and
b the words “in either case”.
5 In section 49 (application of Part 4 of Act to partial intestacies), omit subsection (4).

Intestates' Estates Act 1952

I222
1 Schedule 2 to the Intestates' Estates Act 1952 (rights of surviving spouse or civil partner as respects home) is amended as follows.
2 Omit paragraph 1(4).
3 In paragraph 3, for sub-paragraph (3) substitute—

Administration of Justice Act 1977

I233In section 28 of the Administration of Justice Act 1977, omit subsection (1).

Inheritance Tax Act 1984

I244In the Inheritance Tax Act 1984—
a in section 17 (changes in distribution of deceased's estate, etc.), omit paragraph (c);
b omit section 145 (redemption of surviving spouse's or civil partner's life interest).

Footnotes

  1. I1
    S. 1 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  2. I2
    S. 2 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  3. I3
    S. 3 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  4. I4
    S. 4 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  5. I5
    S. 5 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  6. I6
    S. 8 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  7. I7
    S. 10 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  8. I8
    S. 9 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  9. I9
    Sch. 1 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  10. I10
    Sch. 4 para. 1 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  11. I11
    Sch. 2 para. 2 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  12. I12
    Sch. 2 para. 3 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  13. I13
    Sch. 2 para. 4 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  14. I14
    Sch. 2 para. 5 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  15. I15
    Sch. 2 para. 6 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  16. I16
    Sch. 2 para. 7 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  17. I17
    Sch. 3 para. 2 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  18. I18
    Sch. 3 para. 1 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  19. I19
    Sch. 3 para. 3 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  20. I20
    Sch. 3 para. 4 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  21. I21
    Sch. 3 para. 5 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  22. I22
    Sch. 4 para. 2 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  23. I23
    Sch. 4 para. 3 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  24. I24
    Sch. 4 para. 4 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  25. I25
    S. 6 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  26. I26
    S. 7 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  27. I27
    S. 11 in force at 1.10.2014 by S.I. 2014/2039, art. 2
  28. I28
    Sch. 2 para. 1 in force at 1.10.2014 by S.I. 2014/2039, art. 2