Probate and Administration Flashcards
(17 cards)
Taxable estate
Everything D owned at death including
- Share of JT property
- GROB
- Trust (unless remainderman or intervivos post 2006 or discretionary)
NOT 3rd party insurance / pension
Deductions for IHT
Debts due at date of death
Funeral costs / tombstone
IHT 400 rule
Must submit within 12 months of end of month of death unless no IHT payable and estate is excepted.
When must IHT be paid
6 months from end of month of death (if later then interest0
When can IHT be paid in 10 equal instalments?
- Land
- Agricultural Property
- Quoted shares (over 50%)
- Partnership interest
- Unquoted shares
- ST interest
Low value excepted estate
Gross Taxable Estate + Specified Transfers + Specified Exempt Transfers = below NRB + TNRB
Gross taxable estate = taxable estate without deductions
Specified transfers = chargeable transfers in prior 7 years NOT unquoted shares
Specified Exempt Transfers = chargeable transfers to spouse or charity
+
1. No GROBs
2. No claim for RNRB
3. Foreign assets £100k or less
4. Trust interest £250k or less
5. Specified Transfers £250k or less
6. No transfers of unquoted shares
Exempt excepted estate
Gross Taxable Estate + Specified Transfers + Specified Exempt Transfers = £3 million or less; nad
Net taxxable estate + STs + SETs = below NRB and any TNRB
+
1. No GROBs
2. No RNRB
3. Foregin assets £100k or under
4. Trust below £250k
5. STs below £250k
6. No transfers of unquoted shares
When is a grant needed
Needed to have authority to deal with D’s assets unless:
- free property;
- chattels (not car);
- bank account £5k or less
Named assets can be dealt with without a grant
Who can apply for grant of letters with will
- Adult (parent if no=one better)
- Inheriting under will - priority etermined by statutory order.
- Executor
- Trustee of residuary estate
- B of residuary estate
- PR of residuary B
- Other B or C
- PR of B or C
Min of 2 if life interest trust or minor
Who an apply for grant of letters
- Beneficially entitled under intestacy rules (spouse must wait 28 days)
- Inherit under intestacy rules
- spouse
- child
- parent
- sibling
- grandparent
- aunt or uncle
- creditor or person who does not receive a benefit but may if estate larger
Protection from unknown B or C
Notice of intentionto distribute into
1. Gazette
2. If land: local paper (business paper maybe)
3. Wait 2 months
Protection from known B or C
- Insurance
- Retain assets
- Payment into court
- Indemnity from B
- Benjamin order = attempted to locate + no reasonable propsect of locating without disproportionate expense
- Presumption of death act = no evidence alive for 7 years
Order of sale of assets to pay creditors
- Assets not distributed by will
- Residuary estate - pecuniary legacies
- Specified assets
- Pecuniary legacies
- Specific Gifts
Appropriation of assets
May give something different if:
1. part of resiude
2. B consents; nad
3. appropriation value is not more than entitlement
Claim under IPFDA
- Time = 6 months of grant
- Category: Spouse (or ex not remarried), child, cohabitee 2 years, dependant (substantial contribution to reasonable needs for nothing in return)
- Ground: failed to make reasonable financial provision
- if spouse: unreasonable
- everyone else: insufficient for maintenance
court will consider
- extent D supported A
- needs of other Bs
- A’s needs
- reasons why excluded
- size and nature of D’s estate
Variation and disclaimers
Variation: direct to transfer to someone else
Disclaimer = refuse to accept (passes as if B died before D)
If make variation in writing within 2 years statitng relevant statutes appply, then takes effeect for IHT and CGT purposes as if made by D. Not a PET for B and not liable to CGT.
- D’s estate may ahve to pay more IHT and acquisition value for new B is date of death value.
May not be worth doing if increases IHT payable, original B unlikely to pass in 7 years, original B woudl not pay CGT on the gift.
