Administration: Grants of representation Flashcards
REMINDER BECAUSE I ALWAYS FORGET IT
If a trust arises under a will, 2 trustees are needed. If minor has vested interest can give to parents as they can give valid receipt (among other options)
What is a grant of representation?
Court order confirming authority of those named in it to administer the estate
What are the 3 types of grant?
- Grant of probate
- Grant of letters of administration (with will)
- Grant of letters of administration
What does the grant confirm?
- Identity and date of death of deceased
- Deceased left valid will
- Identity of executors appointed
- Value of estate to which grant applies (succession estate)
Official signature + stamp +holographic seal added
When will a grant not be needed?
If estate contains only assets not requiring a grant
From when does the succession estate legally vest in the hands of the executor and administrator?
- Executor = from death
- Administrator = when appointment confirmed by grant
Authority only extends to succession estate!
How will PRs provide evidence of their appointment when complying with duties to administer estate?
Grant of representation (provides proof of PR’s authority to act)
When is a grant of probate appropriate?
- Deceased left valid will
- Will appoints executors and at least one is going to act
Issued in names of those executors who apply
If will only disposes of some of deceased’s property (i.e. partially intestate), is a grant of probate still required?
E.g. whole/part of estate left to pre-deceased family member by will and no substitution provisions apply
Yes
What does it mean if the appointment of an executor under will is limited? How is this reflected?
- Means authority only extends to specific assets, jurisdiction or time
- Will be reflected in authority conferred by grant
Can someone named in a will give the right to take out a grant to someone else?
No - but can formally appoint someone to act on their behalf under power of attorney
When is a grant of letter of administration (with will) appropriate?
- Deceased left valid will
- Appoints no executors who are willing/able to act
Rule 20 applies - entitled to apply for grant in order of priority
Same as grant of probate re correct grant even if it does not dispose of all estate (i.e. partially intestate)
When must at least 2 administrators be appointed under a grant of letters of administration (with will) or grant of letters of administration?
If there is a life or minor interest
When is a grant of letters of administration appropriate?
Deceased died intestate (no will or invalid will)
Rule 22 applies - entitlement derives from relationship to deceased and right to share of estate under intestacy
For what assets (in succession estate) is no grant required for PRs to deal with?
- Assets that can be distributed under Administration of Estates (Small Payments Act) 1965
- Personal household possessions and cash
Orders made under Administration of Estates (Small Payments Act) 1965 permit what to be paid to whom?
- Permit a restricted category of assets (national savings [bank accounts, premium bonds, savings certificates]; Friendly, Industrial and Provident Society deposit accounts; arrears of salary and wages; pensions where deceased was public service; building society accounts)…
- …to be paid to persons who appear to be beneficially entitled to assets without formal proof of title
What is the upper financial limit of payments made under Administration of Estates (Small Payments Act) 1965? What happens if value of asset is grater?
- £5,000 per asset
- If greater = grant required to establish title to whole sum (not just that in excess of £5,000)
Example: A will includes:
Building society account worth £60,000
- Grant required as value greater than statutory limit under Act
Premium bonds worth £2,000
- Grant not required
High street bank current account worth £10,000
- Technically not subject to Small Payments Act but bank may agree to close account without sight of grant
Does the Administration of Estates (Small Payments Act) 1965 make relevant payments obligatory for those holding assets?
No - only permissible
Does not compel them to pay
Why are the provisions of Administration of Estates (Small Payments Act) 1965 rarely required?
Most banks/financial institutions adopt own policy and release sums (commonly up to £15k) without sight of grant permitted evidential requirements are complied with to close account and show that recipient entitled to money (death certificate, will, confirmation of entitlement under intestacy)
PRs may also be expected to sign undertaking confirming right to administer and give indemnity to bank in event payment made to wrong person
Why are PRs able to dispose of chattles without having to produce formal proof of their authority? What is the exception to this? And what should they check before doing so?
- Title to personal household possessions passes by delivery and proof of ownership not required when they are sold
- Exception: cars (reg docs needed), joint property (would need consent from joint owner)
- Should check whether any items gifted specifically by will before selling items
What cash can a PR take possession of with no grant?
Cash found at deceased’s home
What is not needed for assets passing outide of succession estate to be released? What is needed?
- Grant not needed for release
- Death certificate and any other documentation required by asset holder needed
Recall the items passing outside of succession estate - what is the process for dealing with them?
- Property owned as joint tenants - property passes automatically on death; land reg/bank transfers title into name of surviving owner
- DMCs - deceased transferred ownership/control to B in lifetime
- Life policies written in trust, discretionary pension lump sums nom for TP - funds payable to named B on production of death certificate
- Assets held in trust in which deceased had interest - T should be notified of death and trust deed determines what happens
What are the advantages to having assets in estate that can be administered without a grant?
- Releases money to Bs without waiting for grant/administration to be completed
- Provides source of funds to meet expenses inc IHT
- Cost-effective way to carry out administration of small estate/estate comprising only assets which do not require grant
NB unless an estate comprises only assets where a grant is not required the PRs will need to obtain a grant of representation
Once a grant is required, it is usually simpler to administer the whole estate with reference to the grant rather than try and administer some assets without it (even if in principle that might be possible)
