Administration: Assets without a Grant Flashcards
Which asset will always require a grant of representation to deal with?
A. Personal jewellery
B. Joint bank account
C. Sole-owned freehold property
D. Premium bonds under £5,000
C. Sole-owned freehold property
Explanation: Land in the deceased’s sole name cannot be transferred without a grant.
Which of the following assets usually passes outside of the succession estate and therefore does not require a grant?
A. A cash ISA
B. A jointly owned house
C. A vehicle registered to the deceased
D. A savings account over £15,000
B. A jointly owned house
Explanation: Jointly held property passes by survivorship and does not require a grant.
Under the Administration of Estates (Small Payments) Act 1965, what is the maximum per asset value that can be released without a grant?
A. £10,000
B. £15,000
C. £5,000
D. £1,000
C. £5,000
Explanation: The statutory limit per asset is £5,000. If it exceeds this, a grant is required for the whole amount.
Which of the following assets passes automatically outside the succession estate and does not require a grant?
A. A pension fund nominated to a friend
B. A sole bank account under £5,000
C. Personal household contents
D. Savings held in a trust for a minor
A. A pension fund nominated to a friend
Explanation: Nominated pensions fall outside the estate and are paid directly to the nominated beneficiary.
Carla dies with a £20,000 building society account and personal jewellery. Which asset can the PR deal with without a grant?
A. Building society account
B. Jewellery
C. Neither
D. Both
B. Jewellery
Explanation: Personal belongings can be dealt with by PRs without a grant. The account is over the limit.
Clara dies intestate with £1,500 in premium bonds, £14,000 in a bank account, and jewellery. What requires a grant?
A. Bank account
B. Premium bonds
C. Jewellery
D. None of the above
A. Bank account
Explanation: Though many banks may release up to £15,000, legally a grant may still be required depending on policy.
What do banks and financial institutions typically require to release funds under their own small estate policies?
A. A sworn affidavit from the executor
B. A court order confirming entitlement
C. A certified copy of the will alone
D. A signed indemnity and evidence of entitlement
D. A signed indemnity and evidence of entitlement
Explanation: Most institutions require proof of entitlement and an indemnity to protect themselves from future claims.
What kind of account falls under the Administration of Estates (Small Payments) Act 1965?
A. National Savings account
B. High-street current account
C. Stocks and shares ISA
D. Life insurance with no named beneficiary
A. National Savings account
Explanation: The Act applies to National Savings, Friendly Societies, and certain public pensions. National Savings accounts qualify.
Which of these would NOT fall outside the succession estate?
A. Pension nominated to a third party
B. Life insurance in trust
C. Joint bank account held as joint tenants
D. Property held as tenants in common
D. Property held as tenants in common
Explanation: Tenancy in common property does pass through the estate and therefore requires a grant for administration.
What is a practical reason PRs might choose to use non-grant assets first?
A. To avoid inheritance tax
B. To avoid applying for a grant altogether
C. To avoid the duties of being a PR
D. To pay administration expenses or IHT early
D. To pay administration expenses or IHT early
Explanation: Funds accessible without a grant can provide liquidity for urgent estate costs and inheritance tax due before probate is granted.
Which of the following assets can be passed to the beneficiary with just a death certificate and no grant?
A. A savings account worth £40,000
B. A pension held in trust and nominated to a third party
C. Company shares owned solely by the deceased
D. A freehold property in the deceased’s sole name
B. A pension held in trust and nominated to a third party
Explanation: Assets like these pass outside the succession estate and are distributed directly to the named beneficiary.
What is the most important legal limitation on a PR who tries to administer some assets without a grant?
A. They cannot transfer real property without a grant
B. They are personally liable for HMRC errors
C. They must notify all beneficiaries in writing
D. They need court permission before touching any cash
A. They cannot transfer real property without a grant
Explanation: The Land Registry requires a grant to transfer title to land or property — even if other assets can be dealt with.
