2.1 Probate - Grant of Representation Flashcards
(10 cards)
What is the effect of grant of representation?
PRs have power to collect assets from estate
When is grant of representation not required?
Cash found
Chattels
- Furniture
- Jewellery
- Clothing
- Cars
Small sums due to estate
- x < £5,000
- Assets (Natural Savings Bank/Building or Friendly Societies/Natural Savings Certificates + Premium Savings Bonds)
T’s death => Executor’s powers
Grant => Administrator’s powers
When is grant of representation limited?
Minor
Lack capacity
Special grant
Last/Only PR with grant deceased => Complete admin of estate
Previous grant revoked
When is Letter of Administration required?
NO will annexed => PA1P
Will annexed => PA1A
What is the rule under Rule 22 of Non-Contentious Probate Rules 1987?
NO will > Estate passes to;
1) Surviving spouse
2) Issues
3) Parents
4) Siblings (whole/half blood)
5) Grandparents
6) Uncles/Aunts (whole/half blood)
7) Treasury solicitor
8) T’s creditors
How may Personal Representatives be appointed?
Testator appoints
- NOT minor
- Mental capacity
Court discretion
=> Appointment of Executor
- Max. 4
- UNLESS renounce power > Signed statement > Registry
- UNLESS reserve power (can still apply for grant if circumstances change)
=> Appointment of Administrator
- Max. 4
- UNLESS renounce power > Signed statement > Registry
=> Additional PRs
- NOT succeeded in priority by others
What is the procedure for applying for grant of representation?
1) Obtaining grant
Take instructions
Collect details
- Parties
- Assets
- Liabilities
- Gifts
Prepare paperwork
- Death certificate
- Wills + Codicils
- Docs > Assets + Liabilities
- Insurance
- Pension policies
Register death
- At Institutions/Cos/Undertakings
- T has intent > Confirm amounts to and from estate
Advise non-beneficiaries
2) Lodging papers
- Statement of truth (signed by Executor/Administrator)
- Wills + Codicils (originals + 2 copies)
- Form IHT205 (excepted estate) => Probate Registry
- Form IHT400 (non-excepted estates) => HMRC
- Additional evidence
- Supporting docs
- Probate fees payment
- Probate application form (PA1P (will annexed + grant of probate/LoA) OR PA1A (NO will + grant of LoA) => Probate Registry
3) Further evidence (affidavits) (requested by court)
- Will due execution
- T’s knowledge + approval
- Alteration T&Cs
- Attempted revocation
4) PRs => Form IHT400 => HMRC
- Make full enquiries (reasonably practicable) > Value of estate
- Within 12 months of T’s death (interest starts to run 6 months after T’s death)
=> Account for IHT => Grant then possible
What is required for schedule including valuation of assets and liabilities?
PRs provide info re assets + debts (at T’s death)
- Building society passbooks
- Share certificates
- Bank account details
Written notice => Institutions holding T’s assets => Provide death certificate
- Exact valuations
- Evidence of T’s death
What is required for excepted estates?
1) Excepted estate
- Low value
- Everything left to Spouse/Civil Partner/Charity
- Deceased > Foreign domiciliary w UK assets < £150k
2) Either
NO notice required => Grant obtained
Notice in writing required => HMRC
- Within 35 days of grant issue/estate turning out not as excepted estate
- Form IHT 205/207 (T died while living abroad)
- Form IHT 217 (Late spouse/civil partner => Unused IHT => Deceased)
=> NO IHT due
- Falls below inheritance tax threshold (depends if transferrable nil rate band)
How may initial payments of IHT be funded?
Statement of truth + IHT400 + supporting evidence
Small payments (AEA 1965)
IHT423 schedule
- Draw down on bank accounts held in T’s sole name
Bank loan from T/PR’s bank
Loan from Ben
Sale of assets
- NO grant needed
- Subject to probate
Direct payment via insurance policy