Module 8 Wills And Intestacy

Question 1

What is the checklist for a valid will (five)

Answer 1

Testator over 18 of sound mind under no pressure
In writing
Signed by testator
Signature witnessed by two independent witnesses
– they cannot benefit from will all be spouse/civil partner of a beneficiary
Ideally dated kept in the safe place executors keep copy

Question 2

What are the duties of executors

Answer 2

Determine assets and liabilities of a state
Get probate
Collect assets and pay debts
Cecil tax liabilities (income/CGT)
Complete account for HMRC
– – list of assets
– – gifts made in seven years
– – gift with reservation of benefit
– – – Tax due if some of the above exceeds nil rate band plus where applicable residence nil rate band
– – – IHT due must usually be paid before probate granted
– if executor unable or unwilling to act probate registry will appoint an administrator to act in their place

Question 3

Deed of variation

Answer 3

Over 18 and of sound mind
Normally deed executed sating heart estate was originally distributed how are varied and who will benefit
Intended for IHT purposes – statement to that effect
Intended for CGT purposes – intended for that affect
Made within two years of death in writing and signed by affected beneficiaries
If more IHT payable executors/administrators must also sign and agree (can only decline if not enough money to pay tax)
No consideration for money/money’s worth
Intestate situation can be varied
Estates can only be varied once
If parent gives up inheritance for a minor child it is treated as parental settlement
A successful those giving up their Inheritances are not deemed to have made a transfer of value i.e. as if they never received the inheritance so the wheel is in effect re-written

Question 4

Date of disclaimer

Answer 4

Similar to a data variation but where the person inheriting the property does not wish to accept it – they must not already have excepted it
This time within two years
Must contain statement that it is to have a fight for IHT
Disclaimer not treated as a transfer of value and goes back into the will to be distributed to the other beneficiaries
Unlike I did a variation the person disclaiming has no choice regarding who then inherits the property

Question 5

Revoking a will

Answer 5

Destroying the old well or making a new one
Getting married or entering civil partnership unless the will was set up in anticipation
Test data must have mental capacity and intend to revoke the well through destruction or a formal document
When I couple of divorced the divorce cancels and express appointed as executor and cancelled any benefits due to the expels

Question 6

Income Received Up to date of death

Answer 6

LPR
All usual allowances and release can be claimed by LPR
Tax calculator on usual basis
Full personal allowance – even if die early and tax year

Question 7

Income received after death

Answer 7

LPR pays debts
No personal allowance personal savings allowance or Devans allowance
All taxed at basic rate
– 7.5% dividend income
20% all other income

Question 8

CGT in connection with death

Answer 8

LP ours liable at 20% or 28% depending on the asset
Charge on post death gain only (LPR acquires as it at date of death)
LPR benefit from annual exemption amount in tax year of date of death and following two tax years only
LPR transfer as it to beneficiary is not a disposal for CGT purposes and the beneficiary acquire the asset at the value on the date of death
If LPR dispose of my residence used by beneficiary before and after to say Steph main residence exemption applies if beneficiary will receive minimum 75% of sale proceeds
LPR can claim capital losses arising in tax year of date of death and carry them back against gains made in three years prior to death (later years first)