Wills / Probate Flashcards
(46 cards)
What property passes outside the will?
1) joint property - joint tenancy = survivorship
2) insurance policies
3) pension
4) trust property
Requirements for a valid will?
1) capacity
2) intention
3) formalities
When is there not an assumption of knowledge and approval?
When blind/ illiterate / suspicious circumstances
How is an attestation clause written?
Signed by T in our joint presence and then by us in his/hers
What happens if no attestation clause?
Affidavit of due execution
What is s1 wills act?
If more than 2 witnesses to a will and beneficiary gifted then that gift can be allowed
When is there not presumed intention of a will?
1) if T blind or illiterate
2) where another signed on behalf of T
3) suspicious circumstances
Ask client about overseas assets
1) foreign assets might not pass under UK will
2) a new UK will may revoke a foreign will
Inheritance tax reliefs? (Not lifetime gifts)
1) agricultural property relief - farmer leave farmland to next of kin without tax - owned two years (50% or 100%)
2) charity exemption
3) business assets owned for over 2 years (business property relief) either 50% or 100%
4) spouse - if left all to spouse then they can take allowance of £325k and add to hers
What is current tax free nil rate band?
£325k
When is charity exemption
If 10% of net estate left to charity then 36% not 40%
What is net estate for IHT
Assets - debts and exemptions(bar charity exemption), reliefs and NRB
What is transferable NRB?
If partner dies without using all of NRB then the remainder can be transferred to surviving spouse for when they pass
What is residence nil rate band?
IHT free amount up £175,000
- extra amount added to NRB
- estate must pass to lineal descendant
- as long as property after July 2015, even if sold it, would still benefit
Lifetime gifts
Potentially exempt. Become exempt after 7 years. If dies within then becomes a chargeable transfer
(Lifetime gifts to spouse and charity exempt from outset)
£3k a year are not subject to IHT
(Unused can be carried forward one year so max £6k)
What s for valid will?
S9 Wills Act 1837
What is survivorship clause of will!
Include time someone must survive you for
How to revoke a will?
- Marriage
- Destruction
- Further condicil
When is a will not revoked by marriage
- Made in expectation of forthcoming marriage
- T does not intend for will to be revoked by marriage
When are alterations to a will valid?
Only if executed like a will eg signed, in presence of witness who attest
How many executors if minor child?
2 minimum if administrators (intestacy)
1 minimum if executors (will)
What is s29 Trustee Act
Reasonable remuneration to a trustee for time spent and work done but only if T is:
1) Trust corporation
2) T “acting in a professional capacity”
What does divorce have on effect of executors?
Remove former spouse from the will entirely
When can you renounce executorship?
When not meddled/ assisted
Or could ask to have power reserved
