»Ê¹ÚÌåÓýapp

All assets to spouse

»Ê¹ÚÌåÓýapp deceased leaves all his assets absolutely to his wife. As she was still alive when he died, their children would get nothing from his estate.

»Ê¹ÚÌåÓýapp children may decide to claim their legal rights. Between them they can claim one third of the net moveable estate (TSEM6507). If there were two children, and they claimed, each would receive one sixth.

Liferent to spouse

»Ê¹ÚÌåÓýapp deceased leaves a liferent of the whole estate to his wife. This creates a trust. She receives the income arising, less trust management expenses. »Ê¹ÚÌåÓýapp will states that this is for the rest of her life. It could have been a shorter period, for example, until she re-marries. »Ê¹ÚÌåÓýapp estate will go to the children, when she dies.

»Ê¹ÚÌåÓýapp widow and her children each have legal rights. She can give up her liferent, and claim one third of the net moveable estate (TSEM6507). »Ê¹ÚÌåÓýapp children can, between them, claim one third of the net moveable estate.

If the widow claims her legal rights, the trustees must decide the date that the children become entitled to their share of the estate. It may be immediately. It may be when the liferent was originally due to finish. It depends on the terms of the will.

If it is the original finishing date, there may be a trust under the doctrine of equitable compensation. »Ê¹ÚÌåÓýapp income arising to the remaining estate is accumulated. It fills the ‘holeâ€� in the estate that the legal rights claim created. Because it is accumulated, it is within ICTA88/S686. »Ê¹ÚÌåÓýapp accumulation cannot continue more than 21 years. If the ‘holeâ€� is not filled by then, there is an even more obscure legal situation.

Internal users should refer any doubt or difficulty to Trusts Technical.