Final Review: Wills Flashcards
(25 cards)
What is the effect of marriage/divorce on an executed will?
If T marries, the will is no longer effective unless it is clear that T executed the will in contemplation of marrying this person
If T divorces their ex-spouse after executing the will, ex-spouse is treated as having died and the will remains in effect.
What grant of representation is used when the deceased left a valid will appointing an executor?
Grant of probate
- 1-4 executors
What grant of representation is used when the deceased had a will, but there was a problem with the appointment of an executor (e.g., no executor named in will, or executor dies before T)?
Letters of administration with will annexed
What grant of representation is used when the deceased left no will?
Letters of administration
What grant of representation is used when the last surviving PR dies before completing the administration of an estate?
A grant de bonis non
NOTE: This does not apply if the executor has died but has left an executor of their own (chain representation)
Can a minor take a grant of representation?
No, but:
- if there are other, adult PRs, a grant will be made to the adults with power reserved for the minor
- if the minor is the only PR, grant will be made to the minor’s parents until they turn 18
What must the PRs pay before they can obtain a grant of representation?
IHT
What documents must be sent with an application for a grant of probate?
- 2 copies of the will
- Any codicils/affidavits/statements of truth
- Probate court fees
When would a beneficiary lodge a “caveat”? What does it do?
They should lodge it if they think the will is invalid.
It puts administration of the estate on hold for up to 6 months.
What is a “citation to accept or refuse a grant”?
An interested party may ask the Probate Registry to issue this if someone with a prior right to a grant has not applied + shows no intention of applying for one.
When must an inheritance account be filed with HMRC?
Within 12 months of the end of the month of the decedent’s death (unless it is a small estate or an excepted estate)
NOTE: This does not apply if the estate is SMALL, EXEMPT, or EXCEPTED.
If the deceased was the co-owner of land at their death, how is the land valued? Is it discounted?
It will be discounted to reflect the difficulty is selling co-owned land.
NOTE: This does not apply if the land is co-owned with a spouse.
What is a:
- Small estate
- Exempted estate
- Excepted estate
Small estate: An estate of a UK domiciliary that doesn’t exceed the IHT nil-rate band (£325,000).
Exempted estate: An estate worth less than £3 million + net chargeable estate does not exceed the IHT nil-rate band.
Excepted estate: An estate of a non-UK domiciled decedent if their UK estate consisted only of cash/quoted shares totalling no more than £150,000
Is a PR liable for the breach of duty by another PR?
No, unless they were negligent in preventing the other’s breach.
What is a Benjamin Order?
A court order giving PRs leave to distribute the estate based on an assumption set out in the order (e.g., a missing B should be treated as having died before the deceased)
How can PRs protect themselves against UNKNOWN claims from creditors?
By placing adverts in the London Gazette/local newspapers/trade journals asking interested parties to contact the PR’s solicitor within a MINIMUM of 2 months.
How can PRs protect themselves against KNOWN claims from creditors they cannot find?
- Make the payment to the court and distribute the rest of the estate
- Get Bs to indemnify them
- Benjamin Order
- Purchase insurance against the risk of a missing claimant appearing
Who gets their share first- beneficiaries or creditors?
Creditors
What is a variation?
It allows a beneficiary to change who gets their inheritance
When will a variation be subject to IHT/CGT?
If the variation was:
- In writing
- Made within 2 years of death, AND
- Not made for monetary consideration
It will be treated as having been left to the new beneficiary.
If these conditions are not met, the gift will be treated as a transfer for value (IHT) and a deemed disposal (CGT) by the OG beneficiary.
Can the PRs charge the estate for acting as such?
Generally no, unless:
- The will provides for it
- If more than one PR, reasonable renumeration can be charged with the consent of the other PRs
- By agreement with the Bs
What (generally) is a family provisions claim under the Claims Against Estates Under Inheritance Act 1975?
An application to set aside the terms of a will/vary the intestacy of a person who died domiciled in England & Wales on the grounds that reasonable financial provision has not been made for the applicant.
When must a family provisions claim under the Claims Against Estates Under Inheritance Act 1975 be brought?
Within 6 months of the date of the grant of representation.
What is the standard of “reasonable financial provision”?
Spouse: What is reasonable in all the circumstances, whether or not required for maintenance.
Other: Provision such that they can live decently and comfortably according to their situation.
