Rules of intestacy-no spouse but children, Financial Accounting

The intestate leaves no spouse but children

The net estate devolves upon the surviving children and is divided equally between them. If any child has not, at the time of intestate's death, reached his majority, his share of property will be held in trust until he reaches the age of 18 years or, in the case of a female until she marries under that age.

Example:

Mr A dies intestate; his wife Mrs A died some years ago. Mr A is survived by his sons B (22 years old) and C (18 years only).  His daughter is at school; she is not yet married.  His net estate is worth Shs.3m. How will his property be divided?

It will be divided equally between B, C and D. D's share will be held in trust see Chapter 8) until she reaches the age of 18 years, or until she marries, if she marries before she reaches the age of 18. If a child of the deceased intestate predeceases him, but leaves his or her own issue (i.e. children, grandchildren, etc.), then the issue take, through degrees, in equal shares, the share which their parent would have taken had he not pre-deceased the intestate (PER STIRPES RULE).

Posted Date: 12/13/2012 4:07:31 AM | Location : United States







Related Discussions:- Rules of intestacy-no spouse but children, Assignment Help, Ask Question on Rules of intestacy-no spouse but children, Get Answer, Expert's Help, Rules of intestacy-no spouse but children Discussions

Write discussion on Rules of intestacy-no spouse but children
Your posts are moderated
Related Questions
Retirement of a partner When one of the partners retires ante the others will continue trading, the n it is important that he gets a share of the goodwill that he helped create i

Q. Draw neat sketches showing recommended formation width for bank and cutting for concrete sleeper track on B.G. as per latest guidelines of the Railway Board for double line. Sid

Define Accruals or accrued charges What are Accruals or accrued charges - Expenses that are done for the current accounting period which have not yet been paid. These are someti

DEFINITION OF BANKRUPTCY Bankruptcy is another key area of accounting . The issues addressed here deal with the properties of an individual (a sole trader or partner in a partner

what is recorded sales on account of 3,280

Revenue recognition is a joint project of financial accounting standard board and international accounting standard board.1.identify the roles and objectives of FASB and IASB?.2. W

HOW TO CALCULTE GOODWILL FOR CONSOLIDATED STATEMENTS

Answer the following questions relating to Discounted Cash Flow (DCF) projections and valuations. (a)    Michael Hudson asks a rhetorical question (tongue in cheek): "What's not

Break-Even EBIT: Rolston Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Rolston would have 1

Terry Corporation had 300,000 shares of common stock outstanding at December 31, 2010. In addition, it had 90,000 stock options outstanding, which had been granted to certain execu