2.1 Probate - Grant of Representation

Question 1

What is the effect of grant of representation?

Answer 1

PRs have power to collect assets from estate

Question 2

When is grant of representation not required?

Answer 2

Cash found

Chattels

• Furniture
• Jewellery
• Clothing
• Cars

Small sums due to estate

• x < £5,000
• Assets (Natural Savings Bank/Building or Friendly Societies/Natural Savings Certificates + Premium Savings Bonds)

T’s death => Executor’s powers

Grant => Administrator’s powers

Question 3

When is grant of representation limited?

Answer 3

Minor

Lack capacity

Special grant

Last/Only PR with grant deceased => Complete admin of estate

Previous grant revoked

Question 4

When is Letter of Administration required?

Answer 4

NO will annexed => PA1P

Will annexed => PA1A

Question 5

What is the rule under Rule 22 of Non-Contentious Probate Rules 1987?

Answer 5

NO will > Estate passes to;

1) Surviving spouse
2) Issues
3) Parents
4) Siblings (whole/half blood)
5) Grandparents
6) Uncles/Aunts (whole/half blood)
7) Treasury solicitor
8) T’s creditors

Question 6

How may Personal Representatives be appointed?

Answer 6

Testator appoints

• NOT minor
• Mental capacity

Court discretion

=> Appointment of Executor

• Max. 4
• UNLESS renounce power > Signed statement > Registry
• UNLESS reserve power (can still apply for grant if circumstances change)

=> Appointment of Administrator

• Max. 4
• UNLESS renounce power > Signed statement > Registry

=> Additional PRs
- NOT succeeded in priority by others

Question 7

What is the procedure for applying for grant of representation?

Answer 7

1) Obtaining grant

Take instructions

Collect details

• Parties
• Assets
• Liabilities
• Gifts

Prepare paperwork

• Death certificate
• Wills + Codicils
• Docs > Assets + Liabilities
• Insurance
• Pension policies

Register death

• At Institutions/Cos/Undertakings
• T has intent > Confirm amounts to and from estate

Advise non-beneficiaries

2) Lodging papers
- Statement of truth (signed by Executor/Administrator)
- Wills + Codicils (originals + 2 copies)
- Form IHT205 (excepted estate) => Probate Registry
- Form IHT400 (non-excepted estates) => HMRC
- Additional evidence
- Supporting docs
- Probate fees payment
- Probate application form (PA1P (will annexed + grant of probate/LoA) OR PA1A (NO will + grant of LoA) => Probate Registry

3) Further evidence (affidavits) (requested by court)
- Will due execution
- T’s knowledge + approval
- Alteration T&Cs
- Attempted revocation

4) PRs => Form IHT400 => HMRC
- Make full enquiries (reasonably practicable) > Value of estate
- Within 12 months of T’s death (interest starts to run 6 months after T’s death)
=> Account for IHT => Grant then possible

Question 8

What is required for schedule including valuation of assets and liabilities?

Answer 8

PRs provide info re assets + debts (at T’s death)

• Building society passbooks
• Share certificates
• Bank account details

Written notice => Institutions holding T’s assets => Provide death certificate

• Exact valuations
• Evidence of T’s death

Question 9

What is required for excepted estates?

Answer 9

1) Excepted estate
- Low value
- Everything left to Spouse/Civil Partner/Charity
- Deceased > Foreign domiciliary w UK assets < £150k

2) Either

NO notice required => Grant obtained

Notice in writing required => HMRC

• Within 35 days of grant issue/estate turning out not as excepted estate
• Form IHT 205/207 (T died while living abroad)
• Form IHT 217 (Late spouse/civil partner => Unused IHT => Deceased)

=> NO IHT due
- Falls below inheritance tax threshold (depends if transferrable nil rate band)

Question 10

How may initial payments of IHT be funded?

Answer 10

Statement of truth + IHT400 + supporting evidence

Small payments (AEA 1965)

IHT423 schedule
- Draw down on bank accounts held in T’s sole name

Bank loan from T/PR’s bank

Loan from Ben

Sale of assets

• NO grant needed
• Subject to probate

Direct payment via insurance policy