The Government has announced that the Estates of Deceased Persons (Forfeiture Rule and Law of Succession) Act 2011 is to come into effect in England and Wales on 1 February 2012. The Act permits children of disclaiming or disqualified adult heirs to inherit as if by per stirpes, i.e. if more than one equally the share which their parent would have inherited if they had not disclaimed or been disqualified.
The Act amends the law of succession in England and Wales where a person disclaims an inheritance or is disqualified from receiving an inheritance by reason of the forfeiture rule.
The forfeiture rule is defined in Section 1 of the Forfeiture Act 1982 reflecting a public policy decision which in certain circumstances precludes a person who has unlawfully killed another, or unlawfully aided, abetted, counselled or procured the death of that other from acquiring a benefit in consequence of the killing. This covers inheriting under the terms of a Will, under the intestacy rules where there is no Will or where jointly held property passes by survivorship.
In both cases of disclaiming and disqualification the Act has the effect that the person who disclaims or whose inheritance is forfeited is treated, for the purpose of deciding who may inherit, as having died immediately before the testator or intestate. This will have the effect on intestacy that persons claiming through the person who is deemed to have died, such as his or her children, will be able to inherit.
Where there is a Will, the identity of the person entitled to the property instead of the person who is deemed to have died will depend on the terms of the Will.
The Act also amends the law so that a child is able to inherit his or her parent’s interest in an intestate estate, where the parent dies neither married nor a registered civil partner before the age of 18 and the child is alive at the time of the intestate’s death.
Please call or email Roderick Smith with any queries on 020 7288 4732, rodsmith@boltburdon.co.uk