Assets without a Grant Flashcards
Is a grant needed for assets that fall outside the succession estate?
No.
Which assets fall outside of the succession estate?
1) Personal household possessions, cash
2) Assets under Administration of Estates (Small Payments) Act 1965.
Assets under the Administration of Estates (Small Payments) Act 1965?
1) National savings
2) Society deposit accounts
3) Salary/wage arrears
4) Public pensions (police, fire, military)
5) Building society accounts.
What is the limit for assets under the Administration of Estates Act 1965?
£5,000 per asset.
Can asset holders under the 1965 Act increase the limit?
Yes, at their discretion.
If asset value exceeds the limit under 1965 Act, what must be done?
A grant is required to establish title to the whole sum.
Do High Street banks fall under the 1965 Act?
No, but they may follow similar internal policies.
What must PRs provide for assets outside the succession estate?
Death certificate and any additional documentation requested by asset holder.
Assets that pass outside the succession estate and don’t require a grant?
1) Jointly owned property (joint tenants)
2) Donatio mortis causa
3) Life policies in trust
4) Nominated pension lump sums
5) Nominated assets
6) Trust-held assets.
What happens to joint property on death of one owner?
Passes automatically to surviving owner upon proof of death (e.g., death certificate).
Practical benefits of assets that do not require a grant?
Immediate fund access, help with IHT, cost-effective.
Does a life policy payable to the estate require a grant?
Yes.
Does a bank account with £50,000 require a grant?
Typically, yes.
What is the limit for assets under the Administration of Estates Act 1965?
£5,000 per asset.
Can asset holders increase the £5,000 limit under the Act?
Yes, they may apply their own discretion.
What if funds exceed the limit under the Act?
A grant must be obtained for the entire sum.
Do High Street banks fall under the Administration of Estates Act 1965?
No, but they may have their own internal policies.
What documents must PRs produce for assets outside the succession estate?
Death certificate and other documentation required by the asset holder.
Which assets pass outside the succession estate and require no grant?
Joint tenancy property, donations mortis causa, life policies in trust, discretionary pension lump sums, nominated assets, trust-held assets.
What happens when joint property owner dies?
Title automatically passes to surviving owner; death certificate required.
Practical benefits of assets that don’t require a grant?
Quicker release to beneficiaries, funds for IHT, cost-effective.
Does a life policy payable to estate require a grant?
Yes.
Does a bank account with £50K require a grant?
Yes, typically exceeds small payments threshold.
