OUP Questions Flashcards
A man has died leaving a wife and children. A woman has made a claim against the estate stating that she was being maintained by the deceased for a number of years until three months before his death. The deceased suffered a stroke at that time and was in hospital until his death.
Which of the following correctly states the position with regard to the woman’s claim?
The court could disregard the last three months of the deceased’s life as there appears to be a settled basis for maintenance.
If the woman can show that she was being maintained by the deceased until that point, she will have met the criteria for establishing a claim. Case law indicates that where maintenance is discontinued because of circumstances beyond the control of the deceased, the court may disregard any such period.
A firm of solicitors is holding the will of a former client. The client has now passed away and his son is concerned that he may have been unfairly left out of the will. He wishes to obtain a copy of the will.
What action should the solicitor take to avoid being in breach of his duty of confidentiality?
Provide the son with a copy of the will once the personal representatives have provided their consent.
Only the personal representatives of the deceased can provide consent to the firm of solicitors, therefore, unless the widow is also a personal representative, the will cannot be released to the son.
A man has died leaving a will, which includes a monetary legacy to his wife. The matrimonial home is not the subject of a specific gift and was held as tenants in common by the man and his wife. The deceased’s wife wishes to remain in the property.
Which of the following correctly states the position of the executors with regard to the house?
The widow may have the share in the house transferred to her, in full or partial settlement of her entitlement under the will as the executors have power of appropriation.
While the executors do have the power to sell assets, the widow is in occupation and has a share in the house. If the widow’s entitlement under the will is more than or equal to the value of the share of the house, the executors may use their power of appropriation to transfer the house to her in satisfaction of her entitlement.
A woman has died leaving an estate which includes a house in her sole name, antique furniture, a holiday cottage and a collection of classic cars, but very modest amounts of cash. The woman’s son is the sole beneficiary and he occupies the house. The holiday cottage has increased in value since its purchase, although it has a significant mortgage over it which is not protected by insurance.
Which of the following correctly states which of these assets should be sold first in order to pay the liabilities of the estate?
The furniture and the cars. The beneficiary’s consent is NOT required.
The furniture and the cars are likely to be easiest and quickest to sell. Unless they are the subject of a specific gift, the executors have the power to dispose of assets to discharge the liabilities of the estate, including inheritance tax. The executors do not need the beneficiary’s consent to sell assets.
A man has died leaving a will. The executors have made enquiries and have found that one of the five beneficiaries cannot be traced. The executors are concerned about their liability in the event that they distribute the residuary estate and a claim is made by the missing beneficiary.
Which of the following correctly describes the most appropriate course of action to protect the executors from liability?
If the missing beneficiary cannot be traced after making reasonable enquiries, the executors should obtain missing beneficiary insurance before the final distribution of the estate.
The executors should protect themselves in the event that the missing beneficiary does make a claim, but they are not required to deplete the estate by making exhaustive enquiries. In addition to insurance, a Benjamin order or an indemnity from the beneficiaries would provide protection for the executors.
Section reference: 9.8.2
The trustees of a woman’s estate have a number of cash legacies to pay. There are a number of assets which have not been specifically bequeathed, but very little cash.
Which of the following best describes how the trustees’ powers will apply in this situation?
The trustees have full powers of ownership of the assets and may sell them provided they comply with their fiduciary duties.
The trustees may exercise the power of sale over the assets of the estate if they comply with their fiduciary duties to the estate. They will be required to discharge the liabilities of the estate and will need cash in order to do so.
A woman died leaving a will in which she left her chattels to her niece who lives nearby.
Which of the following correctly states the procedure which the woman’s executors should follow when transferring the chattels to her niece?
The chattels can be transferred by delivery. A receipt should be obtained.
Chattels are tangible movable objects and do not require any formalities to pass title to them. It is good practice to obtain a receipt from any beneficiary in order to confirm that any liability of the executors is discharged.
The executors of an estate have obtained a grant of probate. The deceased had a number of debts and the executors go to a solicitor for advice as to how best to discharge these.
Which of the following correctly states the most appropriate advice for the solicitor to give in relation to the payment of the debts in the estate?
Secured debts pass with the property to the beneficiary unless the will provides otherwise. Other debts should be paid before residue is distributed.
Secured debts will be discharged out of the property over which security has been taken (for example, a mortgage over a specific property) if not specifically willed to a beneficiary. Other debts will be paid out of proceeds of sale of assets or from cash before distribution of residue.
Executors are administering an estate which includes an interest in a business in partnership with two others. The business is continuing to trade.
Which of the following correctly states the powers of the executors with regard to the deceased’s share in the business?
The executors must check the partnership agreement to determine the position.
As the business interest is in a partnership, the executors are unlikely to have any right to intervene and continue to run the business. It would generally be a matter addressed in the partnership agreement. The executors will need to ascertain the deceased’s share of the business as part of the administration of the estate.
Executors are administering the estate of a deceased person. They are concerned about their liability to unknown beneficiaries or creditors with a claim against the estate.
Which of the following correctly states how the executors could ascertain unknown liabilities of the estate?
The executors should advertise in the London Gazette and a local newspaper. They should also undertake searches in relation to the deceased.
An advertisement in the London Gazette, a local paper and, if appropriate, any other area where the deceased had a connection will usually alert claimants and give them a time limit to come forward. The searches would cover, for example, bankruptcy.
The executors of a woman’s estate have sold quoted shares in order to pay a debt of the estate. The shares were the subject of a bequest to a beneficiary under the woman’s will.
Which of the following correctly states the beneficiary’s rights in this situation?
The beneficiary is entitled to compensation for the shares from the residue of the estate.
n this situation, the executors will be required to compensate the beneficiary for the fact that they have sold the shares rather than transferring them to the beneficiary.
An executor has received a grant of probate and is collecting in the assets of a deceased person’s estate.
Which of the following correctly states the procedure that the executor should follow when getting in the assets?
The executor must send a copy of the grant of probate issued by the Probate Registry to each relevant organisation or person together with a covering letter requesting transfer of the asset.
he grant of probate gives the executor evidence of authority to deal with the asset and act on behalf of the estate. Multiple copies of the grant should be obtained as most institutions will not accept photocopies or certified copies. For some assets, further formalities or documents such as withdrawal forms may be required, but the grant is the authority to deal with the asset.
A woman has died leaving a half of her estate to her civil partner and half to charity. The family home was in the woman’s sole name and represents approximately one-third of the value of the estate. The family home is not the subject of a specific gift.
Which of the following correctly states the most appropriate action for the executors to take with regard to the family home?
The executors may appropriate the family home in partial satisfaction of the legacy to the civil partner with the civil partner’s consent.
The executors have power to appropriate assets which are not specifically bequeathed by the will and transfer them to beneficiaries in satisfaction of their entitlement under the estate with the consent of the beneficiary in question.
A man has died leaving a valid will. The will contains several pecuniary legacies to his three nephews and his niece. The solicitor administering the estate on behalf of the executors carries out bankruptcy searches on all beneficiaries and discovers that one of the man’s nephews is bankrupt, and that his niece was discharged from bankruptcy two years ago.
Which of the following states the most appropriate course of action in relation to the legacies?
The executors may pay the legacy to the niece but should pay the nephew’s legacy to his trustee in bankruptcy.
Where a beneficiary is bankrupt at the time of the deceased’s death, or becomes bankrupt following the death, in most circumstances any legacy should be paid to their trustee in bankruptcy, rather than to the beneficiary. The trustee in bankruptcy will be able to give the personal representatives a valid receipt for the payment. If the beneficiary has been bankrupt but has been discharged from bankruptcy, the legacy may be paid to the beneficiary.
A woman has died, leaving a valid will which includes a gift of a holiday cottage held in the woman’s sole name to her sister. The personal representatives’ solicitors have drafted an assent to transfer the cottage into the beneficiary’s name. They have included covenants to indemnify the estate and themselves as personal representatives.
Which of the following correctly states the formalities required for the assent?
The assent must be made by deed, it must be in writing, signed by the parties, and naming the recipient.
Where the holder of legal title to property is deceased, the transfer may be affected by assent, provided the assent is in writing, names the recipient, and is signed by the personal representatives. An assent does not always need to be made by deed, but where the personal representatives are including obligations on the recipient, such as indemnity covenants, then the assent must be in the form of a deed, signed by the parties in order to ensure that the covenants are enforceable.
A woman died leaving a number of pecuniary legacies to her siblings and dividing her residuary estate between her two adult children. The woman appointed her husband as her executor. The estate has been administered by a solicitor on the husband’s instructions, and they are preparing for a final distribution.
Which of the following states the most appropriate course of action with regard to the accounts?
The accounts should be sent to the executor for him to sign off, and then to the residuary beneficiaries unless the executor instructs otherwise.
The estate accounts provide a detailed picture of the administration of the estate in order for the executor or administrator to be able to determine that the administration has been conducted properly. It also enables both the executor and the residuary beneficiaries to see how the final distribution is calculated. Unless the solicitor is instructed otherwise, it would not usually be required for other beneficiaries, whose legacies are fixed, to receive a copy of the accounts. The accounts should be signed off before the estate is completed and a final distribution made.
A man has died leaving several pecuniary legacies. The will was disputed but has now been determined to be valid. Because of the dispute, it has not been possible to make payment of any of the legacies nine months after the man’s death. The will is silent regarding interest on pecuniary legacies. The legacies are paid in two instalments, one 11 months after the death, and the final instalment 14 months after the death.
Which of the following correctly states the position with regard to interest on the legacies?
Interest will be payable on outstanding amounts from the end of the year following the death.
If the will is silent regarding interest on pecuniary legacies, this would not generally become payable until after the executor’s year has elapsed. An interim distribution, here, after 11 months, followed by a final distribution means that any interest which accrues will do so on the outstanding amount from the end of the year following death.
A man has died. His will leaves everything to his wife. The value of his assets exceeds the inheritance tax threshold but all assets are held as joint tenants with his wife.
Which of the following correctly states the position with regard to obtaining a grant of representation?
As all assets are held as joint tenants with the man’s wife, no grant of probate is required.
Assets held as joint tenants pass by survivorship and no grant of representation is therefore required to administer the estate. The assets will pass to the man’s wife free of inheritance tax because the spouse exemption applies.
A man has died leaving a valid will. The will appoints three executors, one of whom has predeceased. Neither of the remaining executors is willing or able to act.
Which of the following correctly states the position with regard to the appropriate grant of representation?
As there is a valid will but no executors willing or able to act, the residuary legatee may apply for a grant of letters of administration with the will annexed.
A man has died without a will. The man is survived by his partner with whom he was cohabiting at the time of death, his minor children and his widowed mother.
Which of the following correctly states who is entitled to apply for a grant of representation in relation to the man’s estate?
His mother only.
Because they are not married or in a civil partnership, the man’s cohabitee has no legal standing in relation to his estate and his children are not of full age.
A man has died leaving a will which appoints all three of his children as his executors. The man’s youngest child will be 18 three months after the date of the man’s death.
Which of the following correctly states the most appropriate course of action in relation to the grant of probate?
As the youngest child is almost 18, an application may be made that reserves power to them until they are 18 and able to participate in the administration of the estate.
As the youngest child will be 18 during the period of the administration of the estate, the most appropriate course of action would be to reserve power to them until such time as they become 18 and are able to assist with the administration.
A will is returned to a solicitor after having been duly executed by a client. The will has a covering letter paper-clipped to it.
Which of the following correctly states the action that the solicitor should take in these circumstances?
The solicitor should swear an affidavit or make a witness statement supported by a statement of truth to explain the paperclip mark and file it with the will.
The affidavit or statement of truth are necessary to ensure that when the deceased’s will is submitted for probate, the mark does not raise a query regarding its validity or the existence of codicils or other testamentary documents.
Because something has been attached to the will and has left a mark, HMCTS will query it when the will is submitted for probate as they may consider that is suggests further testamentary documents such as codicils.
An executor is applying for a grant of probate. The executor has completed the IHT documentation, paid the required amount of inheritance tax in relation to the estate and is ready to make the application.
Which of the following correctly describes the procedure for making an application for a grant of probate?
The executor will need to complete the probate application form, complete the statement of truth and send these documents, together with the original will and the fee, to HMCTS.
The inheritance tax that the estate needs to pay must be paid before an application for probate may be made. HMRC will provide a code to quote in the application. Original documents must be sent to HMCTS as copies are not accepted.
A man dies leaving a life assurance policy written in trust, a bank account and his home, both held as joint tenants with his wife. There were no other assets except his personal chattels. He did not leave a will.
Which of the following correctly states the position with regard to the requirement for a grant of representation?
A grant of representation is not required in this case as all assets pass outside the estate or by delivery.
The purpose of the grant of representation is to allow the executors or administrators to deal with the estate. As there is no need for a formal transfer of assets which pass by delivery (the chattels) or assets passing outside the will, the death certificate should be sufficient authority to transfer ownership in this case.
A woman drafted a will in which she left everything to her son, who was also appointed as her executor. The woman’s son predeceased her, leaving a will but no issue. The woman has died.
Which of the following correctly states the position with regard to administering the estate if the woman’s will contains no other provisions?
The will is ineffective and a beneficiary entitled under the intestacy rules should apply for a grant of letters of administration.
The will does not appoint an executor and nor does it dispose of the estate. As the woman’s son predeceased, the chain of representation is broken and the son’s executor cannot apply for a grant on his behalf. A beneficiary under the intestacy rules will need to apply for a grant of letters of administration.
An executor is applying for a grant of representation for an estate where there is inheritance tax to pay.
Which of the following correctly states the steps that the executor will need to take in the correct order?
Obtain funding, pay the inheritance tax, sign the statement of truth, obtain the grant, collect in the estate and pay interim distribution, estate accounts and final distribution.
As the inheritance tax (other than inheritance tax payable in instalments) must be discharged before an application for probate may be made, funding for the tax should be obtained first, either by way of a loan or by requesting funds paid direct to HMRC by a bank or other institution.
A man and his sister have been appointed as executors under the will of their late mother. The man has a mental health issue and is currently detained under a sectioning order for a period of three months. His illness is generally managed effectively with medication.
Which of the following correctly states the most appropriate course of action for his co-executor to take?
The co-executor should take out a grant with power reserved to her brother until he is ready to join in the administration.
A man has died leaving a will. The executor of the will died two weeks before the man. There are two specific legatees, a residuary legatee and a creditor of the estate.
Which of the following correctly states the order of priority to apply for a grant of probate in the event that all of those listed are willing to apply for a grant of probate?
The residuary legatee, either of the specific legatees and the creditor.
The residuary legatee would take priority but, in the event that the residuary legatee did not make an application, either of the specific legatees may do so. The creditor is entitled in the same degree as the specific legatees.
A man has died leaving a valid will which appoints two executors. One of the executors is not willing to act and the other has suffered a stroke and is incapacitated but mentally capable. He has granted a power of attorney to a solicitor who is using the power to manage that executor’s affairs.
Which of the following correctly states the position with regard to grant of representation for the man’s will?
The attorney may apply for a grant of representation for the use and benefit of the incapacitated executor.
Where an executor is not able to administer the estate of the deceased person, their attorney may apply for a grant of representation on their behalf in these circumstances.
A man dies leaving a valid will. The man’s nephew was the sole beneficiary and executor of his will. The nephew obtained a grant of probate and began administering the estate but died before he could complete the administration. The nephew left a valid will which appoints an executor who took out a grant in relation to the nephew’s estate.
Which of the following correctly states the most appropriate person to complete the administration of the man’s estate?
The executor of the nephew’s will may complete the administration of the man’s estate as there is a chain of representation.
Where the administration of an estate has not been completed on the death of an executor, it is possible to complete the administration if there is a chain of representation. This requires that the deceased executor has a valid will which appoints an executor who then proves the estate. The executor acts in the administration of both estates as there is an unbroken chain of representation from executor to executor.
A woman has died leaving a son and a daughter. Her will appoints her daughter as executor. The executor obtains a grant but dies before completing the administration of the estate, leaving no will.
Which of the following correctly states the position with regard to completing the administration of the estate?
The chain of representation is broken and the woman’s son may apply for a grant of letters of administration with the will annexed.
The chain of representation which allows the executor of the estate of a deceased executor to complete the administration does not apply where the chain is broken by an intestacy. As there is someone entitled in the same degree to administer the estate (a son, in this case), a grant de bonis non for letters of administration with the will annexed may be made to allow the administration to continue.
A woman has died very suddenly, leaving a 16-year-old son. The woman had recently made a will appointing her son as her sole executor. The woman was a single parent, and the court appointed her brother as guardian of her son.
Which of the following states the most appropriate course of action in the administration of the estate?
The woman’s brother may make an application for a grant of representation for the use and benefit of his nephew. This will automatically cease when the son becomes 18.
Where the executor under the will is a minor at the time of death, they may not apply for a grant of representation. If they are the sole executor, someone else will need to apply for a grant of representation for their use and benefit. Once the woman’s son becomes 18, the grant will come to an end, and an application for a further grant may be made by the son.
A woman has died, and the validity of her will is in dispute. The executor appointed under the will wishes to defend the action and wishes to ensure that they have authority to do so.
Which of the following correctly states how the executor may obtain authority to defend the action?
The executor may obtain a temporary grant to allow him to defend the action and apply for a full grant once the probate action is settled by the court.
Where there is litigation relating to the estate, such as a contentious probate matter, it is possible for a temporary grant to be obtained to allow the litigation to be completed, and the outcome to be determined. At that point, a full grant application may be undertaken.
A man has died leaving a valid will. The man was a sole trader who ran a haulage business. The business will be sold as a going concern, but the executors wish to ensure that, prior to the issue of the grant, the business is able to continue.
Which of the following correctly states the most appropriate course of action for the executors to take in order to preserve the business?
The executors may apply for a temporary grant ahead of the issue of the full grant in order to allow the business to keep running.
Where a grant is needed quickly in order to preserve the assets of the estate, such as a business which the executors need to run until such time as the grant of representation is issued, it is possible to apply for a temporary grant ad colligenda bona. This allows the PRs to protect the business until such time as the estate can be valued, and the formalities of the application for a full grant completed.
A woman has died, leaving a will which appoints her son as her executor. Both her children are adults and beneficiaries of the estate. Her daughter is concerned that her brother is not a suitable executor, as he has a history of gambling addiction. She wishes to challenge his appointment and put herself forward as an alternative executor.
Which of the following states how the daughter might proceed?
The daughter may enter a caveat in relation to the will, as she has an interest in the estate, and there appear to be grounds to challenge her brother’s suitability as executor.
Where there are possible grounds to challenge the validity of a will, or the appointment of an executor, a party who is interested in the estate, such as a beneficiary or someone who may benefit under an intestacy if the will is found to be invalid, may enter a caveat to prevent the issue of a grant in relation to an estate.
A man has died without a valid will. The man is survived by his wife and an adult son. The wife has not made an application for a grant of representation, and the man’s son wishes to ensure that the estate is administered.
Which of the following correctly states the most appropriate course of action for the man’s son to take?
The man’s son may enter a caveat, and then follow the citation procedure to compel the wife to either apply for a grant of repreWhere an administrator has not made an application for a grant of representation in a reasonable time, and they are the person with the highest level of entitlement to make the application, it is possible for someone lower down the order of entitlement to intervene. They may issue a caveat, and then follow the citation process to compel that person to either apply for a grant, or to step aside and allow the citator, who is making the application, to do so. Where an administrator appears reluctant, compelling them to act is unlikely to achieve the best outcome, and it may be preferable for a more willing applicant to undertake the work.sentation, or to allow him to do so.
A woman has died unmarried, leaving two minor children under the age of five, but leaving no valid will. The woman’s parents have predeceased her, but she is survived by her brother. The woman’s brother has two convictions for fraud. The father of the children wishes to apply for a grant to administer the estate for their benefit.
Which of the following correctly states the most appropriate course of action for the children’s father to take?
The Court may overlook the woman’s brother as an applicant and may appoint the children’s father as administrator if they consider it expedient to do so.
Where there are concerns regarding the suitability of an administrator to carry out that role, the court has the power to pass over the person who would be entitled to apply for a grant and appoint such other person as it thinks expedient. The children’s father has no entitlement under the Intestacy Rules, and in any event, using a caveat and the citation procedure would be inappropriate, as the woman’s brother is unsuitable, rather than unwilling to act.
A man has died leaving an estate including two properties and a collection of rare books.
Which of the following correctly states how the estate should be valued for probate purposes?
Full market value of the assets at the date of death should be determined by a professional in writing.
Assets should be valued by a professional with expertise in that area for probate purposes and should be the full market value of the assets as at the date of death.
A man has died leaving a number of assets including a portfolio of quoted shares.
Which of the following correctly states how the shares should be valued for probate purposes?
By taking one-quarter of the difference between the highest and lowest valuations of the shares on the date of death, added to the lowest value.
The shares should be valued using the ‘quarter up’ rule, which compares the highest and lowest values of the shares on the date of death and adds one-quarter of the value to the lower of the two.
An estate has a liability to inheritance tax. The assets of the estate include a bank savings account which contains enough to pay half of the inheritance tax and a share portfolio which would cover the entire amount if sold at its current value.
Which of the following correctly states the most appropriate method of paying the inheritance tax?
The bank should be asked for a cheque or direct payment to HMRC and the executors should arrange a loan to pay the remainder.
A bank would normally agree to this as no grant of representation can be issued until the inheritance tax is paid. It is not possible to sell the shares before the grant is issued as the executors have no authority to do so.
An estate with a value of £1,000,000 includes a house, cash and a portfolio of shares but no other significant assets. The deceased left everything to their spouse. The executors of the estate are making the application for a grant of probate.
Which of the following accurately states the correct procedure for the executors to follow when complying with their obligations to HMRC?
No formal account is required, although the executors will confirm values as part of their application for a grant.
The estate meets the criteria for an excepted estate as there is no tax to pay, it is no higher than £3,000,000 and it does not include any non-UK property. No IHT400 need be completed.
A woman has died domiciled outside England and Wales. She had a very small estate in the UK (£120,000 in cash and shares) and has never been domiciled in the UK. Her assets pass on intestacy.
Which of the following correctly states the position with regard to inheritance tax?
No form IHT400 need be completed as the estate is a foreign domiciled excepted estate.
