Inheritance Flashcards
How long to pay IHT?
6 months after death
What is the priority list for GOP?
- Executor
- Residuary legatee
- Personal rep of residue
When cant PRs renounce rights?
If they have inter-meddled with estate
Who/ what is needed if will and no will?
Will - executor & GOP
No will - administrator and LOA
What form for GOP and LOA
GOP- PA1P
LOA - PA1A
How much is GOP fee?
£273 if 5k+ or free if less
What assets pass to PRs without GOP
small payments to those beneficially entitled(not if exceed 5k)
Chattels
Cash
What assets dont go through PRs hands?
Joint property
Insurance
Pension benefits
Difference between PR/trustee in retiring?
Trustee can retire
PR cant retire without court order
Whats devastavit?
Liable out of own resources if PR has caused loss by breach of duty (unless acted honestly and reasonably or bene acquesed)
What are creditors rightz?
PRS take kn all debts and liabilities
Only liable to extent of Ds assets
Limitation 6 years
What are beneficiaries rights?
- Prevent issue of grant (6month but can be extended)
- Compel issue of grant (citation)
- Passing over
- Due administration
What are wrongdoing trustee tracing rules?
1- if still has - proprietary claim
2. Bought something - proprietary claim new thing
3. Mixed assets - claim mixed asset
4. Mixed funds - used own first
Innocent tracing rules?
- Still owns - proprietary claim
- Used to buy - proprietary claim over new
- Mixed asset - share
- Mixed bank - proportionate share
Different types of claim for recipient / accessory liability?
Recipient - personal / proprietary
Accessory - personal claim if assisted
Rules for bona fide purchaser without notice
Takes free
Who is an innocent volunteer / tracing rules?
Bona fide with no consideration
Innocent tracing rules apply
Time limit for family provisions post death?
6 months from GOP
Entitlement for post death variation of will under Family and Dependents Act?
1) spouse
2) former spouse (not remarried)
3) child - if adult special circumstances
4) treated as child
5) maintained by D
6) living as husband and wife (2yrs)
(Not a commercial arrangement)
What is attestation clause?
Gives presumption of due execution
Powers that must expressly be given to Trustees?
- Appropriate assets
- Invest
- Purchase land
- Sell
- Give bene income
- Power to use capital to enhance benes
What are the 4 exceptions to the testators year?
1) debts owed
2) charge on land
3) minor child
What protection from missing beneficiaries?
1) indemnity
2) insurance
3) benjamin order
Rule for protection against unknown creditors/ benes?
- Advertise for 2 months
After this another bene must claim against other benes
What is Clayton and Rule in Vaughan. For tracing assets?
Clayton - between two innocents, first money paid in is paid out
Vaughan - can depart from this where
a. Impossible to apply
b. Result in injustice
c. Contrary to parties intent
What is the rule in Hallet?
If mixed property beneficiary gets first choice
What are defences to brining a personal claim against Trustee?
- Exemption clause in trust deed
- Knowledge/ consent of benes
- Honestly and reasonably and ought fairly be excused
- Limitation and laches
What part of will pays IHT?
Residuary
Difference between general and demonstrative gift?
Demonstrative more sepcific eg
100 shares of X paid from X instead of just 100 shares from X
How long must a spouse survive to be entitled in intestacy
28 days
How much is the statutory legacy?
£270,000
What is golden rule of capacity
Get medical practitioner to confirm and witnesses
What must be shown to challenge intention
Fear
Fraud
Force
Undue influence
Mistake
What are the formalities of a will?
- Written and signed
- T intended signature to give effect to will
- 2 witnesses present
- Each witness attest and sign
What is IHT nil rate band?
£325,000
What are values of exempt gifts in consideration of marriage?
£5k by parent
£2.5k remoter relative eg grandparent
£1k others
What is annual exemptions of IHT?
Under 3k free - can be carried forward one year (max 6k) + small gifts under £250 exempt
What is residence nil rate band?
£175k
How to remove a trustee?
- Dead
- Outside UK for 12+ months
- Wants to be discharged
- Refusal to act
- Unfit to act
- Lacks capacity
How many trustees if trust of land?
2 human trustees
How much of trust benefit can a beneficiary receive before?
Max up to half
