4. Administration: Obtaining the Grant

Question 1

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

Answer 1

Grant of probate using form PA1P

Question 2

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?

Answer 2

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

Question 3

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

Answer 3

Grant of (simple) letters of administration using form PA1A

Question 4

Can a grant of probate be kept confidential?

Answer 4

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

Question 5

In what events are more than 1 administrator required?

Answer 5

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

Question 6

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

Answer 6

No

Question 7

What assets pass to the PRs without a grant?

Answer 7

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

Question 8

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

Answer 8

House by survivorship
Life policies with benefit assigned to beneficiary

Question 9

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

Answer 9

IHT400

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

Question 10

What receipt do HMRC send to form IHT400?

Answer 10

IHT421

Question 11

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

Answer 11

Estates over £5,000
Fee of £273

Question 12

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

Answer 12

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

Question 13

When does the IHT400 need to be sent?

Answer 13

Within 12 months of end of month of death

Question 14

When does IHT need to be paid?

Answer 14

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

Question 15

When is IHT paid on instalment-option property?

Answer 15

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

Other 9 instalments due at annual intervals

Question 16

What types of property attracts the instalment option?

Answer 16

• 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

Question 17

What are the three categories of excepted estates?

Answer 17

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

Question 18

What constitutes a “small” estate for IHT purposes?

Answer 18

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

Question 19

What constitutes an “exempt” estate for IHT purposes?

Answer 19

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

Question 20

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

Answer 20

£3 million

Question 21

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

Answer 21

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

Question 22

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?

Answer 22

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

Question 23

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

Answer 23

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

Question 24

How long does it take for HMRC to send IHT421?

Answer 24

20 working days - submitted direct by HMRC to HMCTS

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

Question 25

What is the gross probate value of an estate?

Answer 25

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)

Question 26

What form does an executor use renounce their role?

Answer 26

PA15

Question 27

At what stage can an executor renounce?

Answer 27

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

Question 28

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

Answer 28

R 20

Question 29

What is the order of priority for r 20?

Answer 29

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

Question 30

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

Answer 30

No

Question 31

What form does an entitled administrator use renounce their role?

Answer 31

Form PA16

Question 32

What does NCPR stand for?

Answer 32

Non-Contentious Probate Rules

Question 33

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

Answer 33

R 22

Question 34

What is the order of priority for r 22?

Answer 34

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

Question 35

Can administrators have power reserved?

Answer 35

No

Question 36

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

Answer 36

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

Form PA8A (can be done online)

Question 37

How long does a caveat last?

Answer 37

6 months

Question 38

What are the three types of citation?

Answer 38

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

Question 39

When would a citation to take probate be used?

Answer 39

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

Question 40

When would a citation to propound will be used?

Answer 40

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

Question 41

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

Answer 41

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

Question 42

What is passing over?

Answer 42

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

Question 43

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

Answer 43

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

Question 44

What is the executor’s year?

Answer 44

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

Question 45

What is a devastavit?

Answer 45

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

Question 46

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

Answer 46

They have to pay the beneficiaries out of their own resources

Question 47

What are the key defences to a claim for devastavit?

Answer 47

• 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)

Question 48

How long is the office of PR from?

Answer 48

For life unless court removes them