administration (week 4) Flashcards
Why is a grant needed?
Grant is proof of the executor’s authority of assets within the succession estate
where does an executor get their power from?
power is conferred by the grant from the will
What is administration?
The legal process when someone dies for managing the distribution of their estate, paying debts, taxes, estate expenses and the beneficiaries.
What is a personal representative?
The people permitted by law to administer a deceased’s estate
what is an executor?
A personal representative appointed by will
what is an administrator?
A personal representative appointed by statute
What is a grant of representation?
The court order confirming the authority of the PRs to act (mainly their right to collect the deceased’s assets and distribute the estate
why is a grant of representation necessary?
Because it established the:
- Authority of the PRs to act (mainly, their right to collect assets and distribute the estate) and
- Validity of the deceased’s will, or, that the deceased died interstate
what is the role of a PR?
PR must administer the estate of the deceased. have statutory duty to collect in the deceased’s assets, ensure deceased’s debts are paid and outstanding tax liabilities are met, and then distribute assets to beneficiaries who are entitled.
how do solicitors get involved in the administration of estate? (3 reasons)
instructed by the PR
appointed as an executor (professional PR)
instructed to act on behalf of a party to a contentious probate matter
what is a grant of representation?
court order confirming the authority of those named in it to administer the estate. grant provides proof of the PRs authority to act and therefore, required
what are the three types of grants of representation?
grant of probate
grant of letters of administration (with will)
grant of letters of administration (died interstate)
when is a grant of probate required? (3 things)
deceased left a valid will
will appoints executors
at least one executor appointed will act
if a beneficiary is a child, how many executors do you need?
2
what is the max number of executors?
4
what is the minimum number of executors?
1
when is a grant of letters of administration (with will) appropriate?
deceased left a valid will but will appoints executors who are unwilling/not able to act
when is a grant of letters of administration appropriate?
deceased died interstate
what assets dont need a grant?
bank accounts less than £5,000
many banks and financial institutions will release up to £15,000
household possessions and cash in the home
assets outside of the succession estate
if you arrange the funeral and register the death are you intermeddling?
no
when is an estimate not appropriate for a single chattel item?
if the single item is worth more than £500 (or an unusual item)
how are quoted shares estimated on value?
to establish the date of death value; valued by taking the lower of the 2 prices on the stock exchange daily list and adding ¼ of the difference between the higher and lower value.
when are you deemed not having capacity to act as an executor?
- Pre-deceased the testator
- Are a minor
- Lack capacity
- Are the testator’s former spouse/civil partner and the divorce took place after the will was made
what is grant of double probate?
it means that power can be reserved to any remaining executors (when there was more than 4) who did not manage to become an executor. if the vacancy of executor arose then they would be able to apply at a later date to carry on with the administration.
