4. Administration: Obtaining the Grant Flashcards
If there is a valid will appointing executors, what grant do they apply for using what form?
Grant of probate using form PA1P
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?
Grant of letters of administration with the will annexed using form PA1P
If there is no will, what grant do the administrators apply for using what form?
Grant of (simple) letters of administration using form PA1A
Can a grant of probate be kept confidential?
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
In what events are more than 1 administrator required?
Where a beneficiary is a minor; where a beneficiary only has a life interest
If a beneficiary is a minor, is more than one executor required?
No
What assets pass to the PRs without a grant?
Payment to beneficiaries under £5,000
Chattels
Cash
Accounts holding under £5,000
Moveable personal property, e.g. clothes and car
What assets pass outside the estate therefore the grant of probate is not relevant?
House by survivorship
Life policies with benefit assigned to beneficiary
What form is sent to HMRC for IHT purposes and what is it?
IHT400
Inventory of assets (i.e. the value of the estate) to which deceased was beneficially entitled and their liabilities
What receipt do HMRC send to form IHT400?
IHT421
If applying for grant, when is there a fee and what is the fee?
Estates over £5,000
Fee of £273
What additional documents are required in the application for the grant?
Evidence of due execution and/ or capacity
Evidence as to knowledge and approval
Evidence as to remote witnessing
Evidence [affidavit] of plight and condition
When does the IHT400 need to be sent?
Within 12 months of end of month of death
When does IHT need to be paid?
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
When is IHT paid on instalment-option property?
1st payment - within 6 months of end of month of death
Other 9 instalments due at annual intervals
What types of property attracts the instalment option?
- 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
What are the three categories of excepted estates?
1 - Small estates
2 - Exempt estates
3 - Non-domiciled estates
What constitutes a “small” estate for IHT purposes?
Gross value of estate plus value of specified transfers/ specified exempt transfers in 7 years prior to death is less than NRB
What constitutes an “exempt” estate for IHT purposes?
Where the bulk of the estate attracts the spouse or charity exemption