8. Administration: Obtaining the Grant of Representation

Question 1

Can PRs retire after they have taken the grant of probate? If not, how could a beneficiary replace them?

Answer 1

No, they cannot retire
- B would have to apply to the court to replace them under s 50 Administration of Justice Act

Question 2

If the deceased left a valid will but there are no executors who can act, what form will the grant take

Answer 2

Grant of administration with will annexed

Question 3

Form for the grant if there IS a will

Answer 3

PA1P

Question 4

Form for the grant if there is NO WILL

Answer 4

PA1A

Question 5

When is it required to have at least two administrators for an estate?

Answer 5

1. If one beneficiary is an infant (minority interest)
2. If one beneficiary only has a life interest

Question 6

When does the executor have authority to administer the estate?

Answer 6

As soon as the testator dies
- This authority is CONFIRMED by the grant of probate

Question 7

When do administrators get authority to administer the estate?

Answer 7

Upon the issue of the grant

Question 8

If there are unquoted shares in the estate, who should the PR / Solicitor consult about valuing them?

Answer 8

An accountant

Question 9

Which assets can be accessed WITHOUT a grant?

Answer 9

1. Payments made to persons that do not exceed 5000 (at discretion of institution)
   - Money in national savings bank and trustee savings bank
   - national savings certificates and premium bonds; and
   - money in building societies
2. CHATTELS
3. CASH

Question 10

Which assets of the estate pass outside of the PRs hands

Answer 10

1. Joint property
2. Insurance policies assigned or written in trust
3. Pension benefits

Question 11

How must the fee for forms PA1A / PA1P be paid?

Answer 11

By cheque
- 273 where estate exceeds 5000

Question 12

What must be sent to HMCTS to obtain the grant

Answer 12

1. Will or codicil
2. Potentially, an Affidavit or Witness statement showing:
   i. due execution or capacity
   ii. knowledge and approval
   iii. Evidence as to remote witnessing
   iv. evidence of plight and condition

Question 13

What should the PRs do if the will is ‘lost’

Answer 13

1. If will is lost or accidentally destroyed, grant can be obtained with a copy of the will or reconstruction
   - Must submit application supported by evidence to get the grant

Question 14

Under which circumstances will the PRs prepare an IHT400?

Answer 14

If the estate is not EXCEPTED

Question 15

Under which circumstances will the PRs prepare an IHT401?

Answer 15

For a non-dom with a NON excepted estate

Question 16

When does IHT400 / 401 have to be submitted?

Answer 16

Within 12 months of the end of the month in which the death occurred

Question 17

If PRs think an estate is excepted (so do not submit IHT400) and later learn it is NOT, what must they do?

Answer 17

Submit IHT400 within 6 months of this realisation

Question 18

Excepted Estates: Deaths on or after 1 Jan 2022

Answer 18

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

Question 19

Conditions: Small Estates

Answer 19

1. Gross value of estate for IHT purposes + specified transfers does not exceed NRB
2. Deceased died a UK Dom
3. No more than 250 000 of it is settled property
4. No more than 100 000 of it is outside the UK
5. Specified transfers did not exceed 250 000

Question 20

If the deceased makes a chargeable transfer (gift) of unquoted shares in the 7 years before death, can they still be an exempt estate for IHT purposes (either small or completely exempt)?

Answer 20

NO! BPR and APR are ignored when valuing specified transfers in this context.

Question 21

Exempt Excepted Estates: Requirements

Answer 21

1. Gross value of estate (specified transfers + specified exempt transfers) does not exceed 3M
2. Net chargeable estate after deduction of debts and spouse / charity exemption must NOT exceed NRB

Question 22

When is IHT due?

Answer 22

6 months after the end of the month in which the deceased died
- Certain property (land and some business property) attract the instalment option

Question 23

If some property attracts the instalment option (and PRs opt to use it) when must they pay the first / subsequent instalments

Answer 23

1. First due within 6 months from the end of the month of death
2. Other 9 are due at annual intervals
   - Accumulate interest

Question 24

What happens if some instalment option asset (eg. Land) is sold before all the instalments are paid off for IHT

Answer 24

The remaining instalments all become instantly payable

Question 25

Different ways to fund IHT

Answer 25

1. Direct Payment Scheme
2. Life Assurance
3. Assets realisable without production of grant
4. Loans from beneficiaries
5. Bank Borrowing
6. National savings and Government Stock
7. Heritage Property in Lieu of tax
8. Obtaining a grant on credit