pre grant procedure Flashcards
What is the primary goal of the pre-grant procedure?
To conduct oneself with sensitivity while gathering information and documents needed for the estate administration.
What is the purpose of checklists in the pre-grant procedure?
To ensure that all required information and documents are correctly collected.
What are some examples of funds that can be accessed without a grant?
Pension lump sum benefits, life assurance policies in trust, and jointly owned bank accounts.
What is one task involved in registering the death?
Sending a copy of the death certificate or a letter certifying the death to banks, insurance companies, HMRC, and the deceased’s creditors.
What must be considered when evaluating the validity of a will?
The will should be the last will, not validly revoked, executed in accordance with statutory will formalities, and contain an attestation clause.
When can executors and administrators place early advertising for unknown beneficiaries and creditors?
Executors can do it from the date of death, and administrators can do it from the date of obtaining the grant.
What can banks and building societies release to pay inheritance tax before obtaining a grant?
They may release the deceased’s account funds directly to HMRC through a voluntary direct payment scheme.
How can PRs fund inheritance tax liability through loans?
They can obtain a bank loan or a loan from a beneficiary.
How can PRs fund inheritance tax liability through the sale of assets?
By selling assets that don’t require a grant prior to sale, such as chattels or quoted shares.
How can insurance policy payments be used to fund inheritance tax liability?
If life assurance proceeds are payable to the estate, the insurance company may pay them directly to HMRC.
When might HMRC allow the grant to be obtained on credit for inheritance tax?
In exceptional cases, when PRs demonstrate it’s impossible to pay the tax in advance.
When is inheritance tax due on certain assets that can be paid in instalments?
None of the tax is due until six months from the end of the month in which the deceased died, after which interest starts to be charged
