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Wills And Administration > Administration: Grant Of Representation > Flashcards

Administration: Grant Of Representation Flashcards

1
Q

If the deceased left a will which appoints executors what do they have to do?

A

They will obtain a grant of probate, using form PA1P

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2
Q

If the deceased left a valid will but there are NO persons able to act as executors, what happens?

A

Administrators will obtain a grant of letters with administration with the will annexed, using form PA1P

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3
Q

When the deceased left no will, what will happen?

A

Administrators will obtain a grant of (simple) letters of administration, using form PA1A

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4
Q

What authority does the PRs have BEFORE the grant of representation is given?

A

Executor delivers authority to act in administration of an estate form a wil. The grant of probate CONFIRMS these authorities. They have FULL powers to act from the time of deceased death, BUT they are unable to undertake certain transactions (sale of land) without grant.

Administrations have VERY LIMITED powers before grant is made. Their authority stems Tom grant.

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5
Q

What is necessary to check to ensure the will is admissible?

A

The will is the last will
It has not been validly revoked
It is executed in accordance with Wills Act
Contains an attestation clause

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6
Q

Which assets are grants NOT required?

A

A grant enables PR to PROVE authority to deal with assets. However, it is possible to access some assets without a need for a grant.

If whole estate comprises of these assets, there is no need for a grant at all.

Administration of estates (smal payments) Act 1965

Chattels

Cash

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7
Q

What is the administration of estates (small payments) act

A

Orders made under this act permit payments to be made to persons appearing to be beneficially entitled to the assets without production of the grant.

This facility is NOT available if it ECEEDs 5,000.

Payments can be made in respect of money in national savings, national savings certificates, premium bonds, money in building societies and friendly societies.

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8
Q

Which assets do NOT pass through PRs hands?

A

Joint propety (survivorship)

Insruance policies assigned or written in trust

Pension benefits

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9
Q

What form is necessary for IHT?

A

IHT400.

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10
Q

Can you pay IHT before grant is issued?

A

Yes, some of it is likely to be due before grant is obtained.

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11
Q

What is the application fee for the applciation for the grant?

A

273 where estates exceed 5,000.
No fee if estates are 5,000 or LESS.

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12
Q

What is the application for the grant?

A

Must be made online.

Grants of letters of administration are made by post, but can be made online.

Postal applications - PA1P if there is a will, and PA1A if there is no will.

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13
Q

What are additional documents required to obtain a grant?

A

Necessary to send the will and any codicil to HMCTS

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14
Q

What evidence must be shown for granting a will?

A

Evidence of due execution
Evidence to knowledge and approval
Evidence as to remote witnessing
Evidence of plight and condition
Lost will

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15
Q

What is the IHT400?

A

This is the prepared inventory of assets to which the deceased was beneficiary entitled and of their liabilities.

Form for claiming reliefs and exemptions and calculating IHT payable.

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16
Q

How long as HMRC got from issue the grant of representation to ask for additional information ?

A

60 days

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17
Q

What are excepted estates?

A

Estates that do not have to pay IHT

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18
Q

What are the 3 categories of excepted estate?

A

1 - small estates
2- exempt estates
3 - Non-domiciled estates

19
Q

What are small estates?

A

Estates falling into this category are those where the gross value of the estate does not exceed current nil rate threshold. 325,000

20
Q

What are exempt estates?

A

These are estates where the bulk of the estate attracts the spouse or charity exemption.

The gross value of the estate must not exceed 3 million

The NET chargeable estate after deduction of liabilities and spouse or charity exemptions, must NOT exceed mil rate band

21
Q

What are non-domiciled estates?

A

Where the deceased was never domiciled or treated as domiciled in the UK.

22
Q

What is the procedure for excepted estates?

A

PRs provide no information DIRECTLY to HMRC. Instead, they include on their application for a grant:

Deceased full name and DOD

Declaration that teh estate is an excepted estate, and if they are claiming agaisnt the estate the unused proportion of the IHT nil rate band

The following3 IHT estate values (gross value, net value and net uplifting value)

23
Q

How long does HMCTS have to pass information about excepted estates to HMRC?

A

1 months

24
Q

When is the date to pay for IHT?

A

6 on this after end of month in which deceased died.

25
Q

What are funding options for the IHT?

A

Direct payment schemes

Life assurance

Assets reliable without production of grant

Loans from beneficiaries

Bank borrowing

National savings and government stock

Heritage property in lien f tax

Obtaining a grant on credit

26
Q

What are direct payment schemes for paying IHT?

A

HMRC agreement with British bank association, to allow PRs to arrange payment of IHT to HMRC DIRECTLY from deceased accounts.

27
Q

What is the procedure for direct payment scheme to pay IHT?

A

PRs must provide identificaiton to banks.
PR complete IHT423
PR sends this to bank at same time as they send IHT400 to MRC
Bank send money direct to HMRC.
HMRC email HIHT receipt - IHT421 to HMCTS and notify solicitor

28
Q

What are disadvantage of direct payment scheme to pay IHT?

A

It is slow, so not good if you need grant quickly.

29
Q

When is PA1P and PA1A used?

A

Used to apply for a grant.

PA1P is when a will is left

PA1A is when there is not a valid will and it is intestate

30
Q

What is the probate value of an estate?

A

Gross: Everything that is in the estate under the WILL, including the debts and funeral costs

Net: everything in estate under WILL, minus the debt

31
Q

What is the difference between gross probate and gross estate value?

A

Gross probate is EVERYTHING passing under the will

Gross estate: everything, including things that are outside the will - such as a joint tenant house.

32
Q

What is the net chargeable estate for IHT?

A

This is the gross ESTATE, (not probate), minus the debt, exemptions and relief.

This is what the IHT is charged from.

33
Q

How many executors can there be?

A

Can be one, EVERN if there are infant beneficiaries. This is differnet to administrator.

34
Q

Can an executor renunciation?

A

Yes, they can.

However, ONLY if they have not intermeddler in the estate.

This consists of doing tasks that a PR might do - selling chattels, etc - this means that they accept their appointment, adn therefore must take the grant.

35
Q

How can a renunciation occur?

A

Form PA15, signed by person renouncing. Filed eto MRCTS.

36
Q

When is the letters of administration with will annexed used?

A

When there is a valid will, but no executor that is able to act.

37
Q

Who has entitlement to the grant of letters o administration with will annexed?

A

Order of priority:

Executor

Any residuary legatee or devisee holding trust for any one else (people holding something on trust for someone in the will)

Any other residuary legatee or devisee (someone who has the residuary estate through the will)

PR of residuary legatee (residuary beneficiaries who survived testator, vested interest, but then die without taking grant)

Any other legatee

PR of any other legatee

38
Q

If there is a contingent and vested interest, who is most likely to get the grant?

A

Vested.

39
Q

Can minors be Administrators with will annexed?

A

No. If no other person, the minors parents can apply for minors use and benefit.

Limited until 18

40
Q

How many administrators are needed for will annexed?

A

2 administrators, for any minor beneficiaries.

41
Q

When are administrators applying for a grant of (simple) letters of administration?

A

PA1A, when the deceased died without a valid will, therefore totally intestate

42
Q

Who is entitled to apply for the grant of simple letters of administration?

A

Surviving spouse
Children of deceased and any issue
Father and mother
Brother and sister of whole
Brother and sister of half
Grandparents
Uncle and aunts of whole
Uncle and aunts of half
Any person having beneficial interest
Creditor of deceased.

43
Q

What is “clearing off” ?

A

This is when during letters of simple administration, there is no one in the higher categories, and they have ti explanation that there is no one in the higher categories.

44
Q

How many administrators must rhe be for grant of (simple) letters of administration?

A

Max of 4.

If ore than 4, cannot have “power reserved”

Where 2 or more people are entitled in same degree, grant an be made on application of any of them WITHOUT nothing of others.

Wills And Administration (10 decks)

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