The law is the Administration of Estates Act 1925.
Fourthly, on the statutory trusts for the uncles and aunts of the intestate (being brothers or sisters of the whole blood of a parent of the intestate); but if no person takes an absolutely vested interest under such trusts;
The term statutory trusts is key there. It means where assets are held in trust as defined and governed by a specific law or statute, rather than by a private agreement or will. This is common in cases of intestacy where assets are automatically placed in trust for the benefit of children.
Here's another text confirming that issue of aunts and uncles are next in line:
iwcprobateservices.co.uk/downloads/freeforms/IntestacyRules.pdf
... If no grandparents but uncles or aunts of the whole blood including the children of any such uncles or aunts who predeceased ...
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