Personal Representatives

Question 1

what is an executor

Answer 1

the testator can named the executor in the will - this is the PR

Question 2

If no executor is in place (due to intestacy, death of exec or renunciation), who sorts it?

Answer 2

Administrators - min of 2 if there is a minor who is a benificiary/life interest to protect against fraud. max 4.

Question 3

How do we decide who the administrator will be if no PR?

Answer 3

Rule 22 NCPR sets order of entitlement. the deceased’s:

• surviving spouse/cp
• children
• parents
• siblings
• half siblings
• g’parents
• uncles and aunts
• crown
• creditor of the decaesed

Question 4

what must take place for renunciation

Answer 4

signed written statement stating there has been no intermeddling (steps taken towards administering)

Question 5

Key initial steps PRs must take?

Answer 5

• register death
• notify banks, insurers, HMRC etc
• safeguard and value assets
• liaise with beneficiaries
• pay IHT (required before can obtain grant of rep - 400 or 205)

Question 6

Forms for paying IHT

Answer 6

Form IHT 400, unless an excepted estate, in which case Form IHT 205 (below NRB or enough exceptions that no tax is payable)

Question 7

As you can’t get the estate until all tax is paid, how can the tax payment be funded?

Answer 7

• Direct Payment Scheme - most banks do this, pay directly to HMRC from d’s bank
• loan from beneficiary
• loan from bank
• other sources eg sale of assets, life assurance etc

Question 8

once tax is paid what must be applied for and how?

Answer 8

apply to Family Division of High Court for Grant of Representation, with form PA1P if d had a will, PA1A if not. Include IHT documentation if applicable, any will and codicils with 2 copies, and probate fee.

Question 9

What is a Grant of Representation?

Answer 9

court document evidencing authority of PRs to administer estate. Necessary for working with the deceased’s bank or selling their property, shares etc.

Question 10

what are the different types of grants of rep?

Answer 10

• Executors = Grant of Probate
• Administrators in intestacy = Grant of Letters of Administration
• Administrators where valid will = Grant of Letters of Administration with Will Annexed
• Caveat – can be lodged to prevent issue of Grant. Eg concern about capacity of person who made will so seek caveat to prevent GoR being issued until solved.
• Citation – can be lodged to force progress Grants of Representation

Question 11

main duties of PRs?

Answer 11

Primary duty = s25 Administration of Estates Act 1925

1) Duty to collect the deceased’s assets
2) Duty to administer the estate - pay debts and distribute assets
- also prepare estate accounts, subject to trustee act 2000 powers and duties and are personally liable for losses resulting from breach

Question 12

Main way of protecting yourself as a PR?

Answer 12

Inheritance (Provision for Family & Dependents) Act 1975

•Wait six months from date of issue of Grant. This is bc after 6 months no one else can bring a claim.

Question 13

How to protect against claims from unknown beneficiaries/creditors eg secret child of deceased who died intestate?

Answer 13

• s27 Trustee Act 1925 - advertise in London Gazette, local paper and any other appropriate newspaper, also make land searches
• wait min 2 months before distributing estate -> PR is protected
• *sums can still be claimed from beneficiaries (dont understand lol)