Administration: Grants

Question 1

What are the three types of grants of representation?

Answer 1

1. Grant of probate
2. Grant of letters of administration (with will)
3. Grant of letters of administration

Question 2

When is a grant of probate required?

Answer 2

For estates where:
- the deceased left a valid will
- the will appoints executors
- at least one of the executors appointed is going to act

The grant of probate is issued in the name(s) of those executors who apply.

Note: will still be required even if the will does not dispose of any/all of the deceased’s property.

Note: if the the appointment of executor is limited such as to specific assets - this will be reflected in the grant.

Question 3

When is a grant of letters of administration appropriate?

Answer 3

Appropriate where:
- the deceased left a valid will
- but the will appoints no executors who are willing/able to act

This is correct even if the will fails to dispose of all the estate.

Question 4

How are administrators appointed?

Answer 4

Administrators are appointed under the Non-Contentious Probate Rules 1987 (NCPR).

Letter of Admin w Will: Rule 20 applies and lists in order of priority those who are entitled to apply for the grant.

Letter of Admin: NCPR rule 22 applies and lists in order of priority those who are entitled to apply for the grant.

Question 5

When is grant of letters of administration appropriate?

Answer 5

Where:
- the deceased died without having made a valid Will.

Question 6

For which assets will a PR not require a grant?

Answer 6

• Assets which can be distributed under the Administration of Estate (Small Payments) Act 1965
• Personal household possessions
• Cash

Question 7

Administration of Estate (Small Payments) Act 1965

Answer 7

Assets to which the Act applies:
- National Savings (Bank accounts, Savings certificates, Premium bonds)
- Friendly society and Industrial and Provident Society deposit accounts
- Arrears of salary and wages
- Pensions (police, fire, air force, army)
- Building society accounts

Upper limit of £5,000.

This does not compel the banks but makes payments permissible.

In practice financial institutions will have their own policies (usually up to £15,000) without sight of the grant.

Question 8

Personal possessions and cash

Answer 8

Title to personal household possessional passes by delivery and proof of ownership is not required when they are sold.

• PRs are therefore usually able to dispose of chattels without having to produce formal proof of their authority.
  NOTE: does not apply where there is a joint owner - their consent would be needed to sell.

No need for grant to take possession of cash found at deceased’s home.

Question 9

PRs and assets which pass outside the succession estate.

Answer 9

• Do not devolve on the PRs and do not require a grant to be released.

For these assets the PRs will need to produce:
- Death certificate
- Any other documentation the asset holder requires

Question 10

Assets which pass outside of the succession estate

Answer 10

• Property owned as joint tenants
• Donationes mortis causa
• Life policies written in trust, discretionary pension lump sums nominated for a third party and other nominated assets
• Assets held in a trust in which the deceased had an interest

Question 11

Benefits of having some assets which can administered without a grant

Answer 11

• Releases money which can be made available to beneficiaries without waiting for the grant or administration to be completed
• Provides a source of funds to meet expenses, including IHT
• If the estate is small or comprises only assets which do not require a grant, it can be a cost-effective way to carry out the administration