SQE2 Wills: Grants Flashcards
Who to do if you don’t want to act as PR?
- Executor
- renunciate in writing, signed and witnessed by disinterested witness and statement that you have not inter-meddled
- not if already applied for grant - Administrator
- can always renunciate if not applied for grant
If after Grant
- must apply to court to remove
Options for executor if they do not want to be executor?
- Renunciate
- Reserve Power
- can apply later if change in circumstance
What assets can be dealt with without grant of representation?
Only in non-contentious
- PR may be able to obtain payment of up to £ 5000 by producing death certificate, if it is held in (at institutions discretion):
- National Savings Bank Account
- National Savings Certificates
- Premium Savings Bonds
- Or building societies - Chattels can generally be sold by PR by producing death certificate
How many executors / administrators should there be?
- Executor
- only need 1
- up to 4 - Administrator
- either 1
- need to if minor beneficiary or life interest under trust
Order of entitlement of Letter of Administration with Will Annexed?
- trustee of residuary estate,
- any other residuary beneficiary (Vested interest preferred to contingent ones)
- PRs of anyone residuary beneficiary (other than life tenants of residuary / so only entitled to income form trust)
- Any other beneficiary or creditor
- PRs of other beneficiary or creditor (other than life tenant)
Can witness be administrator?
Not as named beneficiary only if entitled through intestacy
Because gift would have failed (same for their spouse)
Applying for grant if there are others with prior interest?
- If they have renunciate then must simply clear off
- Citation to take probate
- executor has not applied for grant but not repudiated
- can apply for them to passed over
- can then apply to be administrator - Citation to accpet or refuse grant
- Person with better right has not applied for grant
- grant can be given to citor
Order of entitlement to grant of Letter of Administration?
- Spouse
- Children- not if only step (and issue if predeceased)
- Parent (or their issue if predeceased)
- Full Blood Siblings (and issue if predeceased)
- Half Siblings (and issue if predeceased)
- Grandparents
- Uncles/Aunts whole blood (and issue if predeceased)
- Uncles/Aunts half-blood (and issue if predeceased)
- The Crown
- Creditor of deceased
The PR of any have same right
- However any relative listed has priority over PR’s of surviving spouse who then died before obtaining grant (unless spouse was beneficially entitled to entire estate)
What if last remaining PR dies?
- Was it executor who has own executor
- chain of representation
- cannot refuse - Otherwise
- Grant de bonis non given to person with next best entitlement - Check if there is executor reserving power
- could now apply
What happens if minor or incapable person are named as Executor
- There are other executors
- power is reserved for them - No other executors
- Parents granted limited grant of letter of administration with will annexed for use until they reach 18
Why is grant needed and what need to be done to get it?
Estate only vests in PR with grant
Need to pay IHT to received grant
How can IHT be paid?
- Release of funds from bank directly to HMRC (at their discretion)
- Bank loan (requires undertaking)
- Beneficiary loan
- sale of assets (chattel or quoted shares)
- Insurance policy payment (if payable to estate may ask to have it paid to HMRC)
Exception
- In exceptional circumstances HMRC may allow grant to be obtained on credit if PR can demonstrate it is impossible to pay tax in advance
What must be included in an application for grant (including relevant form)
- Will and codicils – plus two copies (or copy/reconstruction of will and an affidavit to support application) - not needed in intestacy
- Official copy of death certificate
- Relevant inheritance tax form (if estate is not excepted)
- Payment for probate fees
- Supporting documents (eg affidavit evidence)
Relevant form
- PA1P for probate or will annexed
- PA1A if there is no will
