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FLK 2 - Wills & Administration > 4. Administration: Obtaining the Grant > Flashcards

4. Administration: Obtaining the Grant Flashcards

1
Q

What is a grant of representation?

A

official document confirming PR’s authority to administer estate + their title to the deceased’s assets.

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2
Q

How can a PR apply for a grant of representation?

A

to HMCTS and can instruct a solicitor to do it

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3
Q

In larger estates, what role can a solicitor play regarding Inheritance Tax (IHT)?

grant of representation

A

A solicitor can advise on
* whether IHT is payable in larger estates
* whether it is necessary to send an account (IHT400) to HMRC, and
* whether some of the IHT has to be paid before the grant is obtained

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4
Q

What are the 6 steps to the initial assessment of obtaining a grant of representation for PRs?

A
  1. Identify PRs
  2. Identify beneficiaries
  3. Obtain details of estate debts/expenses
  4. Determine which assets will not require a grant
  5. Assess IHT on estate
  6. Prepare the application for the grant
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5
Q

What are the two types of a personal representative?

Step 1 of initial assessment

A
  1. Executors
  2. Intended administrators
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6
Q

What grant is obtained for a valid will which appoints executors and who obtains it?

Step 1 of initial assessment

A

Grant of probate obtained by the executors

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7
Q

What grant is obtained for a valid will with no executors and who obtains it?

Step 1 of initial assessment

A

Grant of letters of administration with the will annexed, obtained by the administrators.

Administrators: usually residuary beneficiary

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8
Q

What grant is obtained when no valid will left and who obtains it?

Step 1 of initial assessment

A

Grant of simple letters of administration, obtained by the administrators.

Administrators: main beneficiaries on intestacy

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9
Q

Can one PR obtain a grant and act alone?

Step 1 of initial assessment

A

Yes

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10
Q

What is one key difference between executors and administrators concerning the requirement for multiple individuals to act?

Step 1 of initial assessment

A

Executors can act alone in cases where a beneficiary is an infant or has a life interest, while administratorsmrequire two individuals to act in such situations.

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11
Q

What is the effect of a grant of probate?

Step 1 of initial assessment

A

Confirms executors authority to administer the estate and is proof of entitlement to act.

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12
Q

What is the effect of a grant of letter of administration?

Step 1 of initial assessment

A

Vests the deceased’s property in the administrators.

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13
Q

What are the necessary requirements for a will to be valid and not raise intestacy and a grant of simple letters of administration?

Step 2 of initial assessment

A
  • the will is the last will of the testator;
  • that it has not been validly revoked;
  • that it is executed in accordance with the Wills Act 1837, s 9; and
  • that it contains an attestation clause
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14
Q

If there is a will, what must the solicitor establish with regards to the beneficiaries?

Step 2 of initial assessment

A
  • the identity of the beneficiaries
  • the nature and extent of their entitlements
  • if any gifts failed (lapse/ademption)
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15
Q

If the deceased is intestate, what must the solicitor establish with regards to the beneficiaries?

Step 2 of initial assessment

A
  • which members survived
  • advise on distribution accordingly
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16
Q

To comply with data protection rules what must the solicitor do with regards to beneficiaries?

Step 2 of initial assessment

A

inform the beneficiaries:
* that they hold personal date on them
* the use of purpose for data
* their rights as data subjects

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17
Q

What role does a solicitor play in gathering information about the deceased’s property and debts?

Step 3 of initial assessment

A

The solicitor will request details of the deceased’s assets from the PRs and collect relevant documents like building society passbooks and share certificates.

18
Q

How can you obtain the balances of a deceased person’s bank and building society accounts and the amount due on life policies?

Step 3 of initial assessment

A

by writing to the respective asset holders.

19
Q

When dealing with a deceased person’s assets, where can you obtain valuations for different types of property?

Step 3 of initial assessment

A

Residence and household contents: Consult an estate agent or auctioneer.
Unquoted shares: Seek a valuation from an accountant.

20
Q

What assets may pass to the PRs without a grant?

Step 4 of initial assessment

A
  1. Small Payments Act - cannot exceed £5000 + discretionary (if refused PR must apply for grant)
  2. Chattels - can be sold without a grant
  3. Cash - found in deceased’s possesion (not in bank, ie at home)
21
Q

What assets do not pass to the PRs at all and their effect on a grant?

Step 4 of initial assessment - Give examples

A

Assets that don’t pass under will/intestacy and do not vest PRs, so grant is irrelevant

Examples:
* Joint property (survivorship applies)
* Insurance policies assigned/writen in trust (beneficiary can claim with death certificate no grant required)
* Pension benefits (death certificate only)

22
Q

What steps follow the gathering of details and valuations of a deceased person’s assets?

Step 5 of initial assessment

A

Once all the deceased’s assets are documented and valued, the next steps include:
* Calculating any IHT payable on the estate.
* Determining whether it’s necessary to submit an IHT account to HMRC or if it qualifies as an excepted estate.

23
Q

What is the process for paying Inheritance Tax (IHT) when it’s due before the grant of probate is obtained?

Step 5 of initial assessment

A

If IHT is payable before the grant is obtained, the process involves:
1. PRs sending the IHT account (IHT400/IHT401) and paying any IHT due to HMRC.
1. HMRC emailing a receipt (IHT421) to HMCTS.
1. Informing the PRs or their solicitor that the payment has been completed.

24
Q

What is the difference between IHT400 and IHT401?

Step 5 of initial assessment

A

IHT400 for a person domiciled in the UK
IHT401 is for a person domiciled outside the UK

25
Q

What is the recommended time interval between submitting the IHT400 to HMRC and applying for the grant of probate AND when will the grant be issued?

Step 5 of initial assessment

A
  • allow an interval of 20 working days
  • The grant will not be issued until HMCTS receives the receipt from HMRC.
26
Q

How is a grant of probate application made?

Step 6 of initial assessment - application and fee

A

Must be made online
Exception: where the application is to prove a copy of the will

27
Q

How is a an application for grants of letter of administration (with or without the will) made?

Step 6 of initial assessment - application and fee

A

Post or online
Online: one applicant + only person entitled

28
Q

How are postal application for a grant made?

Step 6 of initial assessment - application and fee

A

Valid will: by sending a completed form PA1P
No valid will: PA1A

29
Q

What is the fee payment process for applying for a grant, and how does it differ between paper and online applications?

Step 6 of initial assessment - application and fee

A
  • The fee is consistent regardless of the application method (paper or online).
  • Paper: the fee is paid by cheque.
  • Online: require the opening of an ‘HMCTS Payment by Account,’ and payment is automatically deducted upon submission.
30
Q

What are the current fees associated with a grant, and how do they vary based on the estate’s value?

Step 6 of initial assessment - application and fee

A
  • fee is £273 for estates exceeding £5,000.
  • No fee is applicable for estates valued at £5,000 or less.
  • Applicants receive one free copy of the grant.
  • Additional copies can be requested at a cost of £1.50 each.
31
Q

What documents are required to be sent to HMCTS in order to obtain the grant of probate?

Step 6 of initial assessment - additional documents required

A

To obtain the grant, it is necessary to send the deceased’s will and any codicil, if applicable, to HMCTS.

32
Q

In what situations might the probate registrar require additional evidence regarding the validity of a will, and how can this evidence be provided?

Step 6 of initial assessment - additional documents required

A

The probate registrar may request additional evidence of a will’s validity in certain cases. This evidence can be provided through:
* An affidavit sworn before a solicitor not representing the PRs.
* A witness statement verified by a statement of truth.

33
Q

What are the ways that further evidence can be obtained from close examination of the will?

Step 6 of initial assessment - additional documents required

A
  • Evidence of due execution and/or capacity
  • Evidence as to knowledge and approval
  • Evidence as to remote witnessing
  • Evidence of plight and condition
  • Lost will
34
Q

What is the summary of procedure for obtaining a grant where IHT 400 is required?

A
  1. Send IHT 400 to HMRC and pay any IHT due
    before the grant. Wait 20 working days for
    HMRC to send receipt (IHT 421) to HMCTS
  2. Apply for grant online or send PA1P or PA1A
    as appropriate to HMCTS
  3. Send to HMCTS:
    * the deceased’s will and codicil, if any
    * additional evidence (eg of due execution)
    * probate fee
35
Q

What is the summary of procedure for obtaining a grant where it is an excepted estate?

A

Apply for grant online or send PA1P or PA1A
as appropriate to HMCTS
* Send to HMCTS:
∘ the deceased’s will and codicil, if any
∘ additional evidence (eg of due execution)
∘ probate fee

36
Q

If there is no will, how will the entitlement to the grant be decided?

A

Order of entitlement is the same as intestacy rules - order of priority.

NCPR 1987 r 22

37
Q

If there is a will annexed, how will the entitlement to the grant be decided?

A

a) Executor (best right to a grant)

b) Residuary legatee or devisee in trust for another person

c) Other residuary legatee or devisee (including life interests)

d) Personal representative of a residuary legatee or devisee (not for life or in trust)

e) Other legatee or devisee (including life interests)

f) Personal representative of other legatee or devisee (not for life or in trust)

g) Any creditor of the deceased

38
Q

When applying for a grant of letters of administration with the will annexed, what must the applicant do?

A

Applicant must explain the basis of their own entitlement - “clearing off”

39
Q

What is clearing off?

A

An applicant must explain why no body in a higher category is applying

40
Q

How does r 20 list applicants and when can they apply?

A

Applicants are listed by priority and they can only apply if there is nobody in higher category willing and able to apply.

41
Q

What types of property don’t require IHT to be paid straight away?

A
  • Excepted estates
  • Land
    (can be in instalments)
42
Q

Who will ‘intermeddling’ affect their right to renounce?

A

Executors only. Administrators can renounce after they have intermeddled

FLK 2 - Wills & Administration (6 decks)

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