Administration: Grants of Representation Flashcards
When is a grant of probate required?
- The deceased left a valid will
- The will appoints executors
- At least one of the executors appointed is going to act
When are letters of administration (with Will) required?
- the deceased left a valid will
- but the will appoints no executors who are willing/able to act.
When are letters of administration required?
the deceased died without having made a valid will
What does the Administration of Estates (Small Payments) Act 1965 allow for?
permits payments to be made to persons who appear to be beneficially entitled to the assets without formal proof of title.
What are small payments act distributions restricted to?
- National Savings (Bank accs, Savings Certificates, Premium Bonds)
- Friendly/Industrial/Provident Society deposit accounts.
- Arrears of salary and wages
- Pensions where dec’d was police, fire authority, air force or army.
- Building society accounts
What is the upper financial limit for small payments?
£5000 per asset
What assets can be distributed without a grant?
- Assets which can be distributed under the Administration of Estates (Small Payments) Act 1965
- Personal household possessions
- Cash
- Property not devolved on PRs
What assets pass outside the succsession estate?
- Property owned as joint tenants
- Life policies written in trust, discretionary pension lump sums nominated for a third party, and other nominated assets
- Donationes mortis causa
- Assets held in a trust in which the deceased had an interest
What are the pre-grant steps?
Death certificate/ funeral
Secure the estate assets
Locate and Will / Codicil
Basis of distribution
Assets/liabilities schedule
Lifetime transfers
What do PRs need to contact organisations about once the asset schedule is created?
- notify them of the death and provide a copy death certificate
- request confirmation of the value of the asst at the date of death
- request instructions for how to close an account / transfer ownership
How do you establish the value of bank accounts?
DOD balance + accrued interest
How do you establish the value of Joint accounts?
Proportion, 50/50 often presumed
How do you establish the value of Low value chattels?
usually acceptable to estimate (value if sold)
How do you establish the value of Single items > £500 (or unusual items)?
formal probate valuation
How do you establish the value of Quoted shares?
rules for DOD value - stock exchange price on that date.
How do you establish the value of Private co shares / partnership interests / sole trader business?
specialist valuer instructed.
How do you establish the value of Shares/financial investments through financial services company?
broker will provide a list of shareholdings /investments and DOD values
How do you establish the value of Land?
estate agents valuation, commonly more than one
How do you establish the value of Jointly owned land?
share established, may need to see office copies
Who cannot act as a PR?
- pre-deceased testator (or survived but died before taking out the grant)
- a minor (power can be reserved when reach 18)
- lack capacity
- former spouse/civil partner and divorce/dissolution after will made.
How many PRs can be on the grant?
Up to 4
What happens to PRs who are appointed as executor but there are already 4 applying for probate?
Power reserved to remaining, can apply if vacancy = grant of double probate
What happens where a PR has died and no others remain?
Chain of representation applies, or
Grant of letters of administration de bonis non is issued
What is the chain of representation?
Executor dies having appointed executor of their own estate and that person takes out grant for Executor 1’s estate
What are the requirements for a Grant of letters of administration de bonis non?
o the administration is incomplete
o there are no remaining personal representatives and
o there has been a previous grant of representation
What are the options if an executor is unwilling to act?
Renunciation
Reserving power
Appointing an attorney
What are the types of professional applications?
Mandatory online application
Online application possible but not mandatory
Mandatory paper application
What are examples of Mandatory paper applications?
- Second grant
- chain of representation applies
- original will is missing or there are issues with the will
- Grants to attorneys
- Grant under NCPR 20 if life interest arises
What PA forms are required?
- PA1A - deceased did not leave a will (NCPR 22)
- PA1P - deceased left a valid will
What is required in the application for a grant?
Confirm Identity of deceased & applicants
Confirmation of the grant required
Executor’s entitlement to grant
Administrator’s entitlement to grant
Estate value and IHT status
Legal Statement
What are the requirements for applying under NCPR 20?
- state which category of applicant
- clear-off anyone with better right to apply
- state whether any beneficiary is a minor or if any life interest arises
What are the requirements for applying under NCPR 22?
- state familial relationship to dec’d / identify which category of applicant,
- confirm entitled to whole/part of estate
- clear-off anyone with better right to apply
- state whether any ben is a minor
When is no probate fee required?
Estates worth less than £5000
What are the inheritance tax forms process for non excepted estates?
- IHT400 will have been completed.
- IHT 400 and any tax due are sent to HMRC
- HMRC then provide confirmation (by IHT 421) to the PR
- PR will not issue the grant before receiving the IHT 421
