The outlines contain the entire functioning knowledge specified by the SRA in relation to Wills and Trusts for the SQE2:

Wills and Intestacy

Validity of wills and codicils:

• testamentary capacity
• duress and undue influence
• formal requirements.

Personal Representatives:

• the appointment of executors
• renunciation and reservation of power.

Alterations and amendments to wills:

• effect of alterations made to wills both before and after execution
• use of codicils.

Revocation of wills:

• methods of revocation
• effect of marriage and divorce of a testator.

The interpretation of wills:

• effect of different types of gift
• failure of gifts.

The intestacy rules:

• Section 46 of The Administration of Estates Act 1925
• the statutory trusts.

Property passing outside the estate:

• joint property
• life policies
• pension scheme benefits
• trust property.

Probate and Administration Practice

Grants of representation:

• need for grant
• the relevant provisions of the Non-Contentious Probate Rules
• application procedure
• valuation of assets and liabilities
• excepted estates
• methods of funding the initial payment of Inheritance Tax
• burden and incidence of Inheritance Tax.

Administration of estates:

• duties of personal representatives
• liabilities of personal representatives and their protection
• the sale of assets to raise funds to pay funeral expenses, tax, debts and legacies
• distribution of the estate.

Claims against estates under the Inheritance (Provision for Family and Dependants) Act 1975:

• time limit
• applicants
• ground.

Taxation – wills and the administration of estates

Inheritance Tax:

• lifetime transfers that are immediately chargeable and those that are potentially exempt
• transfers on death
• exemptions and reliefs
• the scope of anti-avoidance provisions.

Income and Capital Gains Tax in respect of the period of the administration of an estate:

• the personal representatives’ liability to Income Tax and Capital Gains Tax
• the beneficiaries’ liability to Capital Gains Tax on inherited assets.

Core principles of trust law

Creation and requirements of express trusts:

• the three certainties of intention, subject matter and objects:
  • fixed interest trusts
  • discretionary trusts
• formalities to create express inter vivos trusts
• constitution of express inter vivos trusts and exceptions to the rule that equity will not assist a volunteer.

Beneficial entitlement:

• fixed, discretionary, vested, contingent interests
• the rule in Saunders v Vautier.

The distinction between charitable trusts and non-charitable purpose trusts

Resulting trusts:

• how they arise and when they are (or are not) presumed.

Trusts of the family home:

• establishment of a common intention constructive trust:
  • legal title in the name of both parties/sole party
  • express declaration or agreement as to equitable ownership
  • direct and indirect contributions
• requirements to establish proprietary estoppel.

Liability of strangers to the trust:

• establishing recipient liability
• establishing accessory liability.

The fiduciary relationship and its obligations:

• duty not to profit from fiduciary position
• trustees not to purchase trust property
• fiduciary not to put himself in a position where his interest and duty conflict.

Trustees:

• who can be a trustee; appointment, removal and retirement of trustees
• trustees’ duty of care
• trustees’ duty to invest (and powers in relation to investment)
• trustees’ statutory powers of maintenance and advancement.

Trustees’ liability:

• breach of trust
• measure of liability
• protection of trustees
• limitation period.

The nature of equitable remedies and the availability of tracing in equity.