Administration- pre and post grant Flashcards
when is a grant of probate needed?
when the deceased has left a valid will.
what is NCPR 20 (grant of letters of administration, with will annexed)
when the executors under the will cannot act.
1. executor.
2. trustee of the residuary estate.
3. any residuary beneficiary.
4. PRs of anyone in 3 other than a trustee or life tenant of the residue,
5. any other beneficiary or creditor.
6. PRs of anyone in E.
What is NCPR 22 (grant of letters of administration, no will)
- surviving spouse or civil partner.
- children of the deceased.
- father and mother of the deceased.
- whole blood siblings.
- half-blood siblings.
- grandparents.
- aunts and uncles
MUST have a beneficial entitlement under the estate.
how many executors/administrators are allowed?
min 1, max 4.
2 required if a minor with a life interest IF NO WILL.
what happens if an executor/administrator is unable to act?
Executor:
1. Renunciation- cannot renounce if intermeddled.
2. Reserving power- can if intermeddled.
3. appointing attorney- can delegate for a max of 12 months.
Administrator:
1. Renunciation- can if intermeddled.
2. Appoint attorney.
what are the paper forms for NCPR 20 and NCPR 22?
PA1A= NCPR 22
PA1P= executor or NCPR 20.
what can executors do if there are unknown beneficiaries?
Publish a notice of their intention to distribute to known beneficiaries in the London Gazette two months after the date of advertisement.
when is a benjamin order needed?
when the beneficiaries are known but missing.
Will PRs need to pay income tax if the assets generate income during administration?
Yes, they will pay income tax at the basic rate
Non entitled to claim an income tax person allowance.
Only pay it if the total income is above £500.
Will PRs pay capital gains tax if they make a disposal of an asset during administration?
YES, entitled to claim tax free allowance.
ONLY post death gains are chargeable.
Can minors give valid reciept?
NO,
- parent/guardian get provide reciept.
- prs can hold the property on trust until the child reaches 18.
- express clause in the will can give PRs the power to accept receipt from a minor aged 16 or 17.
is capital gains tax charged when assets are transferred from PRs to the beneficiary?
NO.
