Administration: application for a grant Flashcards
Who will register a death/organise a funeral?
PRs may register a death but this is more likely to be done by the family who then provide the PRs with the death certificate.
Family members usually arrange the funeral-there is a moral obligation to follow funeral wishes set out in a wall.
What must PRs complete in relation to the deceased’s assets and liabilities?
The PRs must complete an accurate list of the deceased’s assets and liabilities. It is not possible to obtain the grant or calculate IHT without this information.
How should PRs establish the value of bank accounts?
PRs should request from the bank a summary of the account balance on the date of death plus any accrued interest.
How should PRs establish the value of joint accounts?
PRs must establish what proportion of the account was owned by the deceased.
How should PRs establish the value of low value chattels?
It is acceptable to estimate their value.
How should PRs establish the value of chattels worth more than £500?
A formal probate valuation should be obtained.
How should PRs establish the value of quoted shares?
They are valued by taking the lower of the two prices on the Stock Exchange Daily List and adding ¼ of the difference between the higher and the lower value.
How should PRs establish the value of private co shares/partnership interests/sole trader business?
A specialist valuer would usually be instructed.
How should PRs establish the value of land?
PRs will usually instruct estate agents to prepare a valuation and an average value is used. Jointly owned land the value of the deceased’s share should be established.
Where do executors and administrators derive their authority to act?
Executors derive their authority to act from the will.
Administrators derive their authority to act from the grant.
When will an executor named in a will be unable to act?
-If they pre-deceased the testator
-If they are a minor, but power can be reserved to the minor
-Lack capacity
-Are the testator’s former spouse/civil partner and the divorce/dissolution took place after the will was made
What is the minimum and maximum amount of executors?
Minimum of 1 and a maximum of 4.
What is a grant of double probate?
Power can be reserved to any remaining executors, meaning they can apply at a later date if vacancy arose and the administration remained incomplete. In this instance, they would apply for a grant of double probate.
What is the chain of representation under S7 AEA 1925?
This will apply if the last surviving executor (E1) dies having appointed an executor of their own estate and this person takes out the grant probate for E1’s estate (E2).
S7 AEA 1925 provides that E2 automatically becomes executor of the original testator’s estate as well as being executor for E1’s estate. No additional grant is required.
If the chain of representation cannot operate, what process is followed and what are the three requirements?
If the chain of representation cannot operate a second grant will be issued-a grant of letters of administration de bonis non. Three requirements must be satisfied:
-the administration is incomplete;
-there are no remaining PRs; and
-there has been a previous grant of representation.
When is a grant of letters of administration (with will) the appropriate grant?
Where the deceased left a valid will but there are no executors who are willing/able to act. This is the correct grant even if the will fails to dispose of all the estate.
Their entitlement to apply derives from Rule 20 NCPR, not the will.
What is the statutory order of entitlement to be appointed as administrator as per NCPR 20 1987 under a grant of letters of administration with will?
The statutory order of entitlement to be appointed as administrator under a grant of letters of administration (with will) is:
a) executor
b) trustee of the residuary estate
c) any residuary beneficiary, or a beneficiary of the estate under intestacy
d) the PRs of anyone in (c) other than a trustee or life tenant of the residue
e) any other beneficiary or a creditor
f) PRs of anyone in (e)
When is a grant of letters of administration the appropriate grant?
Where the deceased died intestate.
Their entitlement to apply derives from Rule 22 NCPR.
What is the statutory order of entitlement to be appointed as administrator as per NCPR 22 1987 under a grant of letters of administration?
The statutory order of entitlement to be appointed as administrator under a grant of letters of administration is:
a) surviving spouse or civil partner
b) children of the deceased
c) father and mother of the deceased
d) whole blood siblings
e) half-blood siblings
f) grandparents
g) uncles/aunts of whole blood
h) uncles/aunts of half-blood
What is renunciation?
When an executor formally renounces their right to apply for probate and the administration continues as though they hadn’t been appointed.
The executor must sign a form of renunciation which must be submitted to the probate registry by those who subsequently apply for the grant.
Can an executor renounce if they have intermeddled with the estate?
No, and the Court will not accept an attempt to renounce.
When does a person intermeddle with an estate?
A person intermeddles when they take steps indicating they have accepted their appointment and are fulfilling the duty to administer the estate.
Acts of common humanity such as arranging a funeral or taking steps to secure the estate assets do not amount to intermeddling.
Describe the process of an executor reserving power.
If an executor does not want to act initially, but wants to retain the option to apply for probate later, they may reserve the power to do so but there must be at least one other executor who does take out the grant of probate.
Can an executor reserve power if they have intermeddled?
Yes, this is still possible.
To act later, the executor who reserved power can apply for grant of double probate to run concurrently with the original grant.
