Wills / Probate Flashcards
(19 cards)
Property passing outside will /intestacy
Joint tenant -automatically
Proceeds of a life assurance
Statutory written Nomineee I national savings bank, saving certificates, friendly societies
Trust fund -rule of trust
Personal rep (former spouse as executor - as having died)
Executor (in a will) or administrator
Pre-grant procedure (IHT)
Potential PR may request bank to pay directly to HMRC (can refuse), and for funeral expenses
Can seek for loan or sell some assets by showing death certificate
Grant of probable application to court, docs:
2 copies of will
Copy of death certificate
Tax form re IHT
Probable court fees
Grant of letters of administration, docs:
If present - will
If no attenuation clause - WS (alterations present at the time the will was made)
What if concerns re validity, eg, re mental capacity?
What interested party can do?
Beneficiary - Caveat (put administration on hold, may end up be determined by judge)
Interested party - probable registry to issue a citation to accept or refuse a grant for a person who has right, but showed no intention to apply
When to pay to HMRC?
Within 12 months or sooner (%after 6 months)
Exempt from IHT
Uk domicile:
Small estate - Under. £325 k, or if not over £3mln, but after all charges and exemptions, no more than £325k left
When calculate IHT on co-own land, apply discount (n/a for spouse)
Nondom: only £150k for Dasha and shares
PR responsibility to beneficiaries
Reas care and skill. Maybe liable for losses for breach of duty. Usually not liable for other PR unless negligent in preventing
Admin powers of PRs
Sell, mortgage, lease estate
Appropriate ,use to satisfy legacy, if B consents
Appoint trustees for minor Bs
Delegated duties to agents
Indemnify themselves for expenses incurred
No power to carry out business - must be in a will
Power to invest (suitable for trust and diversified)
Apply the income (if trust for minor) for maintenance, education or benefit of the minor
Accumulate the income until 18
Pay interest from 18 to contingency is satisfied / age is reached
Advance capital (if anyone with prior life interest - consent), vested or contingent. If contingency fails - no obligation to pay back
Protection from unknown Bs
Ad in London Gazette
Local newspaper -trade journal
For 2 months
Then either pay to court or distribute with indemnity from Bs or take insurance or Benjamin order
Wait for 6 months from the date of grant - provision for family and dependants order)
Payment from estate - order
Secured creditors
Unsecured: property indisposed by will, then from residue, and if not - from specific property if in will, pecuniary gifts (abate proportionally), from specifically devised property.
Insolvent estate - order of payments
Secured debts- from property
Unsecured debts - reas funeral /admin
Preferred (wages salaries up to £800)
Ordinary debts (incl to HMRC)
Interest on preferred and ordinary debts
Deferred debts -loan for deceased’s spouse
B disclaiming - writing for IHT / CGT. Legacy? Variation?
Legacy - falls into residue
Under will refused - still can get under intestacy
Variation (whole, or part, writing within 2 years, no consideration - as if left inheritance to new B). If not - calculate iHT for initial B
Payment of legacy. Chattels?
Shares
Land
Whose costs? Who’s interest from the moment of death?
Chattels -delivery
Shares - share transfer form signed and sent with the grant and share cert
Land - writing and B need to register at LR
Costs - by beneficiaries
Interest from death
Ascertaining the residue
Calculate and withhold any IHT first
Prepare estate accounts
B to endorse and identify the account
If B refuse - to court or pay B’s share to the court
Can PR charge for services?
Only if provided by a will or agreed by all Bs
assent - vests legal title in the asset to B
Deemed as From the date of death
Must be in writing, signed by PR, with name of person in whose favour
Notify Land Reg !!
Test for PR responsibility
Acted honestly, reasonably and ought fairly to be excused
