Administration - applying for the grant Flashcards
What grand of representation should the executors seek if there is a valid will?
A grant of probate.
What grant of representation should the administrators seek if there is no valid will?
Administrators must apply for a grant of letters of administration.
Valid will but no executor able/willing to act:
The administrator must apply for a grant of administration with the will annexed.
Rule 20 NCPR - grant of letters of administration (with will):
Deceased left a valid will but there are no executors willing/able to act.
Rule 20 - order of priority:
Executor;
Trustee of the beneficiary;
Any residuary beneficiary;
The PRs of any residuary beneficiaries;
Any other beneficiary/creditor;
The PRs of any other beneficiaries/creditors.
Rule 22 NCPR - grant of letters of administration (no valid will):
Deceased didn’t make a will/the will they made is invalid. Administrators are appointed under the grant.
Rule 22 - order of priority:
Surviving spouse/civil partner;
Children of the deceased;
Father and mother of the deceased;
Whole blood siblings;
Half-siblings;
Grandparents;
Uncles/aunts of whole blood;
Uncles/aunts of half blood.
Applicant must demonstrate the nature of their familial relationship with the deceased.
Applicant must also have a beneficial entitlement.
NCPR 22: no valid will, deceased died intestate
NCPR 20: valid will
NCPR 22: no valid will - form PA1A should be completed
NCPR 20: valid will - form PA1P should be completed
What is an excepted estate?
An estate that has an exception from inheritance tax/IHT 400.
What is the criteria for an excepted estate?
Deceased domiciled in the UK and the gross value of the deceased’s estate was:
Less than the relevant IHT threshold - £325,000.
Less than £1,000,000 but no tax is payable because the property is passing to the deceased’s spouse/civil partner/charity.
Less than £750,000 and a claim is made to transfer all of the NRB.
What is the impact of divorce/dissolution on a will?
Any gift to the former spouse will NOT take effect;
An appointment of the former spouse/civil partner as executor/trustee is NOT effective.
How many beneficiaries are required if a beneficiary is a minor?
At least two administrators.
When is the deadline for submitting the IHT account?
12 months from the date me of the month in which the death occurred. If the deceased died on 15 March the IHT account would need to be submitted by 31 March the following year.
When is the deadline for paying IHT due?
6 months from the end of the month in which the death occurred, after which interest becomes payable on the unpaid tax.
If the deceased died on 15 March, the IHT should be paid by 30 September.
For which assets is the IHT instalment option available?
Land and buildings;
Company shares/securities;
Some unquoted company shares/securities;
Farms or interest in a farming business;
Business or interest in a business;
Timber.
What is the instalment option?
IHT due in respect of certain assets may be paid by 10 equal annual instalments.
The first instalment is the due by the usual deadline (6 months after the end of the month in which the deceased died).
Relevant procedure if a beneficiary wishes to remove an executor?
The beneficiary should apply to the court to replace the executor.
Under s50 Administration of Justice Act 1985, the court has a discretion to replace a PR.
