Administration(3a): grants Flashcards by priya anand

What are the three main types of grant?

• Grant of probate
• Grant of letters of administration (with will)
• Grant of letters of administration

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The grant of probate is required for estates where what three things?

• The deceased left a valid will
• The will appoints executors
• At least one of the executors appointed is going to act

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The grant of probate is issued in whose name?

in the name(s) of those executors who apply

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Is a grant of probate required even if the will does not dispose of any/all of the deceased’s property?

Yes

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A named executor may formally appoint someone to act on their behalf under a what?

power of attorney

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A grant of letters of administration (with will) is the appropriate grant where what?

• the deceased left a valid will
• but the will appoints no executors who are willing/able to act.

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Is a grant of letters of administration (with will) the correct grant even if the will fails to dispose of all the estate?

Yes

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A grant of letters of administration is the appropriate grant where?

the deceased died without having made a valid will (i.e. died intestate).

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Which assets included in the succession estate don’t need a grant for the PRs to deal with them? (3)

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

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What is the purpose of the Administration of Estates (Small Payments) Act 1965?

Orders made under this Act permit payments to be made to persons who appear to be beneficially entitled to the assets without formal proof of title.

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What are the categories of assets to which the Act applies to? (5)

• National Savings (inc. Bank accounts, Savings Certificates and Premium Bonds)
• Friendly Society and Industrial and Provident Society deposit accounts.
• Arrears of salary and wages
• Pensions where the deceased was a member of the police, fire authority, air force or army.
• Building society accounts

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What is the financial limit for the Administration of Estates (Small Payments) Act 1965?

£5,000 per asset

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What happens if a holding exceeds the financial limit for the Administration of Estates (Small Payments) Act 1965?

If a holding exceeds this financial limit no payment can be made under the Act and a grant will be necessary to establish title to the whole sum, not just that in excess of the £5,000 limit.

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What happens in practice in regards to the administration of small payments?

In practice, these statutory provisions are rarely required because most banks and financial institutions adopt their own policy and will release sums (commonly up to £15,000 but sometimes larger amounts) without sight of the grant.

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Are PRs able to dispose of personal household possessions without having to produce formal proof of their authority?

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

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What if there was a joint owner for the personal chattels?

If there was a joint owner they would need to consent before the PRs could effect a sale.

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Which personal possession requires proof of ownership and what will this proof be?

cars where registration documents are needed

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Which type of assets do not require a grant to be released?

Assets which pass outside of the succession estate because these items do not devolve on the PRs.

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What will the PR need to produce for assets which pass outside of the succession estate?

• Death certificate
• Any other documentation the asset holder requires

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Following death, what happens to Property owned as joint tenants?

On the death of one owner the property passes automatically to the survivor under the rules of survivorship.

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Following death, what happens to Life policies written in trust, discretionary pension lump sums nominated for a third party, and other nominated assets?

On production of the death certificate these funds would be payable to the named beneficiary.

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Following death, what happens to Donationes mortis causa?

The deceased would have transferred ownership or control of the asset to the beneficiary during their lifetime.

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Following death, what happens to Assets held in a trust in which the deceased had an interest?

The trustees should be notified of the death. The trust deed will determine what happens to the trust fund (if anything) following the death of a beneficiary.

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What are the pre-grant steps to take when applying for a grant of representation?

• Death Certificate / Funeral
• Secure the estate assets
• Locate original Will / Codicil
• Basis of distribution
• Schedule of assets & liabilities
• Lifetime transfers

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Is the obligation to follow funeral wishes moral or legal?

moral

Will a copy of the will suffice for the purposes of obtaining a grant?

No, original is required.

When locating the will, what should the PR ensure about the will?

The PRs should satisfy themselves that the will is valid, e.g. it was correctly executed and witnessed.

If it appears the deceased died intestate (without having made a will), what should the PR do?

the PRs should make enquiries to confirm this before proceeding with the administration

If there is evidence a will was made, but it cannot be located, what should the PRs do?

the PRs will need to find out what happened. Was it revoked or is it merely lost? If a valid will has been lost appropriate steps must be taken to re-construct it.

Who are the only people legally entitled to see a will before a grant is obtained?

the executors appointed in a will

What should the PRs do regarding timescale?

The PRs should provide the beneficiaries with a realistic timescale for distribution of the estate.

Once a schedule of assets and liabilities has been prepared the PRs should contact any appropriate organisation to do what three things?

• notify them of the death and provide a copy death certificate (if this has not already been done) • request confirmation of the value of the asset at the date of death • request instructions for how to close an account / transfer ownership of the items to the PRs

For single items worth more than £500, how should the PR get the valuation?

a formal probate valuation should be obtained.

if an item is worth less than £500, but the replacement value is more than £500, is a formal probate valuation required?

No. replacement value not relevant.

How should the PR get the valuation for land?

PRs will usually instruct estate agents to prepare a valuation.

Where land is owned jointly, how can a PR know the value of the deceased's share?

Where land is owned jointly the value of the deceased's share should be established.

In what situations should PRs make enquiries to satisfy themselves of the nature of a debt?

• the deceased had borrowed money to finance the purchase of an IHT excluded asset. • a debt owed by the deceased is never actually repaid from the estate funds.

Executors are appointed under what? Where do they get their authority to act?

The will

Administrators are appointed under what? And where do they get their authority to act?

Under the NCPR The grant

Can an executor give someone else the right to take out the grant?

An executor named in a will is unable to act as PR if they are what four things?

• Pre-deceased the testator • Minor • Lack capacity. • The testator's former spouse/civil partner and the divorce/dissolution took place after the will was made.

If more than one executor is appointed, but not all of them will apply for the grant of probate, what should the remaining executor(s) do?

the remaining executor(s) may continue with the application.

What is the maximum number of people that a testator can appoint as an executor?

As many

What is the maximum number of people that can be named on the grant?

four

What happens to the remaining executors that did not get to apply?

Power can be reserved to any remaining executors.

If the executors that did not apply for a grant then applies because a vacancy arose, what is the application called?

grant of double probate

What will happen to Ellie if one of the siblings dies in the clause provided?

The grant can be issued to the four executors appointed by the will.

If a grant has been taken out and one of the PRs appointed dies before the administration is complete, what happens if the number of PRs falls below the minimum needed?

an additional PR can be appointed

If a grant has been taken out and one of the PRs appointed dies before the administration is complete, what happens if no PR remains?

• Chain of representation applies, or • Grant of letters of administration de bonis non is issued

When will chain of representation apply?

The chain of representation will apply if the last surviving executor dies having appointed an executor of their own estate.

Does the chain of representation apply if it is administrators that are acting?

If the chain of representation cannot operate what will be issued?

a grant of letters of administration de bonis non.

If the deceased left a valid will but there are no executors who are willing/able to act, who is appointed under this act?

• Administrators are appointed under this grant.

Who in order of priority, is entitled to make an application for the grant under NCPR 20?

* executor; * trustee of the residuary estate; * any residuary beneficiary; * the PRs of anyone in (c); * any other beneficiary or a creditor; * PRs of anyone in (e).

Can a person in one category apply if anyone in a higher category is able and willing to act as administrator?

Can those within the same category apply?

Those within the same category have an equal right to apply.

If a person in a lower category is applying, what must they explain?

The applicant(s) must explain why anyone with a better right to apply is not doing so.

Do applicants need to explain why a person in the same category is not making the application?

If the deceased did not leave a valid will, who is appointed under this grant?

• Administrators are appointed under this grant.

Who in order of priority, is entitled to make an application for the grant under Rule 22?

• surviving spouse or civil partner • children of

Who is appointed under the grant if the deceased did not leave a valid will?

Administrators are appointed under this grant. ## Footnote Their entitlement to apply derives from Rule 22 NCPR.

Who in order of priority is entitled to make an application for the grant under Rule 22 when the deceased did not leave a valid will?

(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 must applicants do if there is someone with a better right to apply?

Applicants must 'clear-off' anyone with a better (but not equivalent) right to apply.

If there is no one who can apply from (a) - (h), who can then apply?

The Crown (claiming bona vacantia) may apply. ## Footnote The Treasury Solicitor (now called Government Legal Department) shall be entitled to a grant if he claims bona vacantia on behalf of the Crown.

If the Crown does not apply, who can apply?

A creditor, or person who does not receive benefit (but would have done if the estate was larger) may apply.

Who can apply for a grant on behalf of an applicant who survived the deceased but died before taking a grant?

Under Rule 22(4), the PR of any applicant who survived the deceased but died before taking a grant may apply on their behalf.

What must an applicant demonstrate when applying under Rule 22?

Applicants must demonstrate the nature of their familial relationship with the deceased and have a beneficial entitlement under the estate.

When will a spouse be beneficially entitled to the estate to apply under Rule 22?

The spouse must wait for 28 days.

If a man dies intestate leaving an estate worth £200,000 and is survived by his spouse and two adult children, who has the best right to apply?

The spouse has the best right to apply (a) but cannot do so until at least 28 days after the man's death.

If a man dies intestate leaving an estate worth £200,000 and is survived by his spouse and two adult children, who has the next right to apply if the spouse chooses not to apply?

The adult children are the next category entitled (b). However, the value of the man's estate is less than the statutory legacy, so the whole estate passes to the spouse.

Is it possible for someone to apply for a grant on behalf of a minor?

Yes, however, an application by an adult with equal entitlement to apply is given priority.

Which is given priority: an application made on behalf of a minor or an application made by an adult with equal entitlement?

An application by an adult with equal entitlement to apply is given priority over an application made on behalf of a minor.

If no one in a-h under Rule 22 can apply, who has the next right to apply?

A person with no immediate entitlement may do so, provided they would have benefited if the estate were larger (22(3)).

When will an application made on behalf of a minor be appropriate?

• No adult with equal or greater entitlement will act • The minor is the only person within the category having the greatest entitlement, or all those within the category are minors.

In respect of both letters of administration (with will) and letters of administration, how many administrators are required?

Only one administrator is required.

When will more than one administrator be required for letters of administration?

If any part of the estate is passing to a minor beneficiary or is to be held on a life interest trust.

If two administrators are required but there is only one able/willing person in the category with the best entitlement to apply, what will happen?

That person may apply for the grant with somebody from the next category of entitlement.

What is the maximum number of applicants that may apply for letters of administration?

Four.