4. Administration: Obtaining the Grant Flashcards

1
Q

If there is a valid will appointing executors, what grant do they apply for using what form?

A

Grant of probate using form PA1P

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2
Q

If there is a valid will but the executors are not able or willing to act, what grant do the administrators apply for using what form?

A

Grant of letters of administration with the will annexed using form PA1P

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3
Q

If there is no will, what grant do the administrators apply for using what form?

A

Grant of (simple) letters of administration using form PA1A

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4
Q

Can a grant of probate be kept confidential?

A

No - it is a public document that can be inspected so cannot be kept private or confidential

Anyone can view a will once probate is granted, as a will is attached to the grant of probate

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5
Q

In what events are more than 1 administrator required?

A

Where a beneficiary is a minor; where a beneficiary only has a life interest

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6
Q

If a beneficiary is a minor, is more than one executor required?

A

No

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7
Q

What assets pass to the PRs without a grant?

A

Payment to beneficiaries under £5,000
Chattels
Cash
Accounts holding under £5,000
Moveable personal property, e.g. clothes and car

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8
Q

What assets pass outside the estate therefore the grant of probate is not relevant?

A

House by survivorship
Life policies with benefit assigned to beneficiary

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9
Q

What form is sent to HMRC for IHT purposes and what is it?

A

IHT400

Inventory of assets (i.e. the value of the estate) to which deceased was beneficially entitled and their liabilities

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10
Q

What receipt do HMRC send to form IHT400?

A

IHT421

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11
Q

If applying for grant, when is there a fee and what is the fee?

A

Estates over £5,000
Fee of £273

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12
Q

What additional documents are required in the application for the grant?

A

Evidence of due execution and/ or capacity
Evidence as to knowledge and approval
Evidence as to remote witnessing
Evidence [affidavit] of plight and condition

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13
Q

When does the IHT400 need to be sent?

A

Within 12 months of end of month of death

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14
Q

When does IHT need to be paid?

A

6 months after end of month of death - if not paid on time then accrues interest AND must be paid before the grant

Money for IHT paid when IHT400 sent

Some property attracts instalment option, i.e. doesn’t need to be paid in full

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15
Q

When is IHT paid on instalment-option property?

A

1st payment - within 6 months of end of month of death

Other 9 instalments due at annual intervals

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16
Q

What types of property attracts the instalment option?

A
  • Land of any description
  • Business or interest in a business
  • Shares (quoted or unquoted) which immediately before death gave control of the company to the deceased
  • Unquoted shares which do not give control if either:
    (i) the holding is sufficiently large (a holding of at least 10% of the nominal value of the
    company’s shares and worth more than £20,000); or
    (ii) HMRC is satisfied that the tax cannot be paid in one sum without undue hardship; or
    (iii) the IHT attributable to the shares and any other instalment option property in the
    estate amounts to at least 20% of the IHT payable on the estate
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17
Q

What are the three categories of excepted estates?

A

1 - Small estates
2 - Exempt estates
3 - Non-domiciled estates

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18
Q

What constitutes a “small” estate for IHT purposes?

A

Gross value of estate plus value of specified transfers/ specified exempt transfers in 7 years prior to death is less than NRB

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19
Q

What constitutes an “exempt” estate for IHT purposes?

A

Where the bulk of the estate attracts the spouse or charity exemption

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20
Q

What value must an estate not exceed to still be “exempt”?

A

£3 million

21
Q

What are specified transfers for the purposes of “small” and “exempt” estates?

A

Chargeable transfers of cash, personal chattels or tangible moveable property
Quoted shares
Interest in or over land

22
Q

If someone makes a gift within 7 years of death which does not constitute a specified transfer (e.g. unquoted shares), what is the consequence?

A

The estate cannot be classed as a “small” or “exempt” state

23
Q

What are some examples of specified exempt transfers for the purposes of “small” and “exempt” estates?

A

Transfers between spouses
Gifts to charities
Gifts to political parties
Gifts to housing associations
Maintenance funds for historic buildings
Employee trusts

24
Q

How long does it take for HMRC to send IHT421?

A

20 working days - submitted direct by HMRC to HMCTS

Therefore, probate can only be applied for 20 days after submitting the IHT400

25
Q

What is the gross probate value of an estate?

A

Property vesting in the PRs (i.e. excludes interest in joint tenancies, life policies assigned or written in trust, discretionary lump sums under pension schemes and trust property in which the deceased had a life interest)

26
Q

What form does an executor use renounce their role?

A

PA15

27
Q

At what stage can an executor renounce?

A

Only if grant has not been taken, and there has been no intermeddling in the estate

28
Q

What NCPR rule governs entitlement to the grant of grant of letters of administration with the will annexed?

A

R 20

29
Q

What is the order of priority for r 20?

A

The executor
Residuary legatee or devisee holding in trust
Any other residuary legatee or devisee
Or any person entitled to share in the undisposed of residue (i.e. Partial intestacy)
Personal representatives of a deceased residuary legatee or devisee
Any other legatee or devisee, or any creditor of the deceased (i.e. receiving a specific gift)
PR of any other legatee or devisee or of any creditor

30
Q

Does a potential administrator lose their right to renounce be intermeddling?

A

No

31
Q

What form does an entitled administrator use renounce their role?

A

Form PA16

32
Q

What does NCPR stand for?

A

Non-Contentious Probate Rules

33
Q

What NCPR rule governs entitlement to the grant of letters of (simple) administration?

A

R 22

34
Q

What is the order of priority for r 22?

A

The surviving husband or wife
The children of the deceased and the issue of any deceased child who died before the deceased
The father and mother of the deceased
Brothers and sisters of the whole blood and the issue of any deceased brother or sister of the whole blood who died before the deceased
Brothers and sisters of the half blood and the issue of any deceased brother or sister of the half blood who died before the deceased
Grandparents
Uncles and aunts of the whole blood and the issue of any deceased uncle or aunt of the whole blood who died before the deceased
Uncles and aunts of the half blood and the issue of any deceased uncle or aunt of the half blood who died before the deceased

35
Q

Can administrators have power reserved?

A

No

36
Q

What is the purpose of a caveat and what form is used?

A

It prevents a grant being issued until caveat is removed or ceases to exist

Form PA8A (can be done online)

37
Q

How long does a caveat last?

A

6 months

38
Q

What are the three types of citation?

A
  1. Citation to take probate
  2. Citation to propound will
  3. Citation to accept or refuse a grant
39
Q

When would a citation to take probate be used?

A

Where an executor has lost his right to renounce probate by intermeddling in the estate but has not applied for a grant of probate and shows no signs of doing so

40
Q

When would a citation to propound will be used?

A

Where a beneficiary becomes aware that there may be a will that would diminish their entitlement under an earlier will or under an intestacy

41
Q

When would a citation to accept or refuse grant be used?

A

When someone has not applied, and shows no intention of applying, for a grant

42
Q

What is passing over?

A

An application to the Court under s116 Senior Courts Acts for an order passing over that person in favour of someone else

43
Q

Do beneficiaries of an administered estate have a right to inspect accounts and information?

A

Yes - if they are unclear or inaccurate, can apply for court order compelling PRs to provide an inventory and accounts

44
Q

What is the executor’s year?

A

PRs have at least one year from the date of the deceased’s death before they can be called on to distribute the estate

45
Q

What is a devastavit?

A

An action brought against a PR for causing loss to the estate by breach of duty

46
Q

If a PR is found liable for a devastavit, what is the result?

A

They have to pay the beneficiaries out of their own resources

47
Q

What are the key defences to a claim for devastavit?

A
  • Section 61 Wills Act (court has a discretion to totally or partially relieve a PR of personal liability if they acted honestly and reasonably and ought fairly to be excused for the devastavit and for omitting to obtain the directions of the court in the matter)
  • Acquiescence of beneficiaries – an adult beneficiary who, with full knowledge of the facts, consented to a PR’s breach of duty cannot succeed in a claim against the PR
  • Limitation - time limit for an unpaid or underpaid beneficiary to bring a claim to recover a share or interest in an estate = 12 years running from the date on which the right to receive the estate accrued (no time limit to bring actions for fraudulent breaches of duty or where the PR has taken property from the estate for their own use)
48
Q

How long is the office of PR from?

A

For life unless court removes them