2): The Law and Practice in Connection with an Application for Grant of Representation Flashcards
(23 cards)
What is a grant of representation and when is it needed?
Court-issued document proving legal authority to deal with an estate
Required to close accounts, sell property, access assets
Not needed for small estates or joint property (survivorship applies)
Who are the personal representatives (PRs)?
Executors: appointed by a will
Administrators: appointed where no valid will or executor is willing/able
What is the name of the grant in testate vs intestate situations?
With will: Grant of Probate
Without will: Letters of Administration
What is ‘non-contentious probate business’ and how is it regulated?
Grant is uncontested (will validity + PR entitlement not disputed)
Governed by Non-Contentious Probate Rules 1987
What is the ‘common form’ application?
Standard grant where will’s validity is not challenged
What happens if a named PR is unwilling or unable to act?
Grant of administration with will annexed (Rule 20)
If no will, grant under Rule 22
What must be submitted to the Probate Registry to obtain a grant of representation?
Original will and codicils
Appropriate application form (PA1P with will / PA1A without)
Probate application fee
When is affidavit or witness evidence required?
Where concerns exist over:
-Due execution
-Testator’s knowledge/approval
-Alterations, damage, or lost wills
What is ‘clearing off’?
application explaining why others with a prior right to apply for grant are not doing so
What is IHT and when does it arise?
Tax on estate at death or on certain lifetime gifts (within 7 years of death)
What is the nil rate band and what are the IHT rates?
Nil rate band = threshold taxed at 0% - IHT only payable on the value above this
20% on chargeable lifetime gifts
40% on death (reduced to 36% if 10%+ given to charity)
What reduces IHT payable?
Exemptions (e.g. spouse, charity)
Allowances (e.g. nil rate band)
Reliefs (e.g. business or agricultural reliefs)
What must PRs do to value the estate for IHT?
Use open market value at date of death (s.4(1) IHTA 1984)
Include all assets and liabilities
Report to HMRC
What types of assets are included in the IHT estate?
Assets passing by will/intestacy
Assets passing outside the will (e.g. survivorship)
Statutory inclusions (e.g. gifts with reservation)
What liabilities are deductible for IHT purposes?
Deceased’s debts
Reasonable funeral costs
Accrued interest on debts
What is an excepted estate and what form is used?
Estate where no full IHT account is needed
Use IHT205 (not IHT400)
What are the 3 types of excepted estates?
Low-value: Below nil rate band
Exempt: Spouse/charity exemptions apply
Non-domiciled: Deceased was never UK domiciled, few UK assets
When is Form IHT400 required and how is it submitted?
For non-excepted estates
Must be submitted within 6 months of death
Online or post
How is IHT paid if the estate has no liquid assets?
Use Direct Payment Scheme (banks, building societies)
Charge other estate assets if needed
What are acceptable and unacceptable IHT payment sources?
✅ Accepted:
-Bank accounts
-Investments, bonds
-National Savings
-Stockbrokers
-Loans from beneficiaries
❌ Not accepted:
-Cheques
-Cash
When is IHT due for non-instalment property?
Before grant is obtained
No later than 6 months from end of death month
What is the IHT instalment option and when is it available?
Allows payment in 10 annual instalments
First due 6 months post-death
Available for:
-Land/buildings
-Shares/securities
-Farms/businesses
-Timber
Who is liable for unpaid IHT?
Personal Representatives
Remain liable until all tax on transferred assets is settled
