Preliminary steps in administration Flashcards
What do personal representatives (PRs) need the death certificate for?
To send to institutions where the deceased held assets.
How can government organizations be notified of a death?
Via a centralized certificate.
Is there a legal obligation to follow funeral wishes?
No, it is a moral rather than legal obligation.
From where can the cost of the funeral be paid?
From estate funds.
What should PRs do to secure the estate assets?
Take steps to ensure valuable items and documents are kept safe.
What must PRs obtain to proceed with the grant?
The original will; a copy will not suffice unless special permission is granted.
What should PRs review in addition to the will?
Any codicil to the will. They should also ensure that the will is valid.
What should PRs do if it appears the deceased died intestate?
Make enquiries to confirm this and locate any previously revoked wills - can search the national will register
What is the basis of distribution?
The will plus any codicils - PRs should read thises fully, identify beneficiaries and provide them with a realistic timescale for distribution.
What is the purpose of a schedule of assets and liabilities?
PRs must identify and value the assets and creditors so that they can:
- Work out steps required to manage distribution
- Calculate IHT due
- Establish whether the estate is solvent
- Estimate what each beneficiary is entitled to
What should PRs do to notify appropriate organizations of a death?
Contact them and provide a copy of the death certificate.
What should PRs request from the bank regarding accounts?
A summary of the account balance on the date of death plus any accrued interest.
What should be established about joint accounts?
What proportion of the account was owned by the deceased.
50/50 is assumed but enquiries should be made.
How should the value of low-value chattels be estimated?
Usually acceptable to estimate value.
How should quoted shares be valued?
- establish the date of death value linked to the stock exchange price on that date
What is usually required for valuing private company shares?
A specialist valuer would usually be instructed.
How should land be valued?
Instruct estate agents to prepare a valuation - usually more than one.
What should PRs collect details of regarding debts?
Debts owed by the deceased at death.
What types of debts can usually be taken into account for IHT?
Credit card statements, phone bills, utility bills.
What debts cannot be taken i nto account when calculating IHT?
- if the deceased borrowed money to finance the purchase of an IHT excluded asset
NB: a debt owed by the deceased is never actually paid from the estate funds
What must PRs establish regarding lifetime transfers?
The nature, date, amount, and recipient of any transfer.
