Wills and Estate Administration

Question 1

Valid Will

Answer 1

1. Held capacity when will is made
2. Intended to make will
3. Executed will in accordance with formalities

Question 2

Grounds for Will Challenge

Answer 2

1. Force
2. Fear
3. Fraud
4. Undue Influence

Question 3

Legal Formalities for Will Creation

Answer 3

1. In Writing
2. Signed by the Testator
3. Signed or Acknowledged by Testator in presence of two or more witnesses
4. Signed by witnesses in presence of testator

Question 4

Will Revocation

Answer 4

1. New will executed
2. Marriage unless intended to marry specific person
3. Divorce

Question 5

Mutual Wills

Answer 5

The agreement creates a constructive trust

Question 6

Types of Legacy Gifts

Answer 6

1. Specific - Gift of particular asset
2. General - Gift that does not identify particular item
3. Pecuniary - Gift of cash
4. Residuary - gift of rest of deceased’s estate

Question 7

Devise

Answer 7

Gift of Real Property

Question 8

Failure of Gift

Answer 8

1. Doctrine of Ademption
2. Lapse

Question 9

Step-Children

Answer 9

Don’t count as children

Question 10

Class Closing Rules

Answer 10

Class closes when at least one benificiary has vested interest

Question 11

Intestate Succession

Answer 11

1. Survived by spouse atleast 28 days - receives everything
2. If Children, spouse receives personal chattels, 270k and 50% of remaining assets, matrimonial home in partial or total satisification
3. Children take remaining 50%

Question 12

Order of Entitlement if no spouse

Answer 12

1. Issue
2. Parents
3. Brother and Sisters of Whole Blood
4. Brothers and Sisters of Half Blood

Question 13

Life Interest Trusts

Answer 13

1. Do not pass by will or intestacy
2. May be subject to IHT

Question 14

Gift in which donor retained benefit

Answer 14

1. Does not pass by will or intestacy
2. Part of IHT

Question 15

Executor can renounce if they don’t get probate

Answer 15

1. In writing
2. Statement that they have intermeddled
3. Witness with no interest
4. Filed at Probate Office

Question 16

Grants of Representation

Answer 16

1. Legal document that confirms person’s ability to administer an estate

Question 17

PRs able to ask for cash payment

Answer 17

1. Government provided investments not exceeding 5000 quid
2. Tangible property can be sold without grant of representation

Question 18

Grants of Probate

Answer 18

Valid Will names one or more executors who are willing and able to act

Question 19

Grants of Letters of Administration with Will Annexed

Answer 19

Valid Will but no executor able and willing to act

Question 20

Grants of Letters of Administration

Answer 20

Deceased without will

Question 21

Grants de bonis non

Answer 21

Second grant needs when last PR dies or previous grant prevoked

Question 22

Pre-Grant Procedure: Ways to pay tax liability

Answer 22

1. Ask deceased bank
2. Loan from bank or beneficiary
3. Life Assurance policy proceeds
4. Sell Estate Assets

Question 23

Inheritance Tax: PR Deliver account

Answer 23

12 months. In practice, earlier because interest runs from 6 months

Question 24

Duties of Personal Representatives

Answer 24

1. Collect monies due and other assets that vest in them
2. Administer the estate
3. Pay debts and legacies, distribute estates
4. Comply with standard of care
5. Trustee Act 2000 applies
6. Reasonable care and skill
7. Best interest of beneficiaries

Question 25

PR Liability

Answer 25

1. May be sued for breach 2. Court can relieve PR if acted honestly and reasonable and ought fairly to be excused 3. Testator can exclude PR liability

Question 26

Powers of PR

Answer 26

1. Sell, mortgage or lease assets 2. Appropriate 3. Appoint trustees of property for minor 4. Maintain minor 5. Advance capital

Question 27

Protection of PRs

Answer 27

1. Comply with s.77 2. Place advert in London Gazette, Local newspapers, trade publications 3. Creditors and beneficiaries must have atleast two month period to approach

Question 28

Payment of Debts: Solvent Estate (Unsecured Debts)

Answer 28

1. Property not disposed of in will 2. Property which forms part of the residue 3. Property given for payment of debts 4. Property specifically charged with debt payments 5. Fun for pecuniary legacies 6 Property specifically bequeathed or devised

Question 29

Payment of Debts: Insolvent Estate (Order of Creditors)

Answer 29

1. Funeral, Testamentary and Admin 2. Preferred Debts (maximum 800) 3. Ordinary Debts 4. Deferred Debts

Question 30

Claims under the 1975 Act

Answer 30

1. Reasonable financial provision not made for them 2. Spouse, Ex-Spouse if not married, Child or Person treated as Child, Person Maintained, Person who cohabited with deceased for atleast two years

Question 31

Payment of Legacies

Answer 31

1. Chattels - Handed Over 2. Stocks and Shares - Transfer Form 3. Property- Conveyancing by Deed 4. Pecuniary Legacies - Residue