Preliminary steps in Administration of Estate Flashcards
What are the 5 Pre-Grant Steps?
1) Death certificate / Funeral
2) Secure estate assets
3) Locate will / codicil
4) Basis of distribution & identify beneficiaries
5) Schedule of assets & lifetime transfers.
How can government organisations be notified of death?
Via centralised service or by contacting each organisation individually.
What are funeral costs payable from?
Estate funds.
What should PR do if deceased appears to have died intestate?
Make enquiries to confirm before proceeding with administration.
What if will is believed to exist but cannot be located?
PR must investigate and take steps to reconstruct if necessary.
What is the national will register?
A registry for recording the existence of wills.
Who can access the national will register? When does it become public?
PR before grant; becomes public after grant is issued.
Why must PR compile accurate list of assets and liabilities?
To identify/assess estate, creditors, IHT, beneficiary entitlements, and solvency.
How can PR find out value of a sole bank account?
Request a statement or summary from the bank.
How can PR find out value of a joint bank account?
Make specific enquiries with the bank.
What must be done for an item worth over £500?
Obtain a formal probate valuation.
How is value of quoted shares calculated?
Lower of two Stock Exchange prices + 1/4 of difference between higher and lower prices.
How to value private company shares, partnership, or business?
Specialist valuer should be instructed.
Are debts deducted when calculating IHT?
Yes.
When are debts not deducted for IHT purposes?
If used to purchase excluded asset or not repaid from estate.
When do lifetime gifts affect IHT?
If made within 7 years before death.
How is estate item value calculated: sale price or replacement cost?
Sale price.
