sqe2 Flashcards
who cannot validly witness will
child
lack mental capacity
blind
also remember a will cannot make a valid gift to any of the following people - a witness, a witness’s spouse or their civil partner; nor to a beneficiary whose interest derives from a witness or a witness’s spouse or a witness’s civil partner
when must Ws be present at same time and when o need
- Signature made or acknowledged in presence of two or more witnesses, present at same time
- Each witness attests (ie watches) and signs / OR acknowledges their signature in presence of testator
No need sign in each other’s presence
- Each witness attests (ie watches) and signs / OR acknowledges their signature in presence of testator
how to end letter re bereavement
“I am very sorry to hear of ___ ‘s death”
Possible wills next steps
- Arrange a valuer
- See a copy of the will
- Write to the bank and find out from care home if any fees outstanding
- If you receive any correspondence, let me know
- If you discover additional assets or liabilities, let me know
What do I always forget about NRB
Spouses
nil rate band (amount spouse didn’t use - up to 325k) if ONLY if partner died on/after Oct 2007
(eg if used none - get 650k at 0%)
resi nil rate band RNRB (up to 175k) whenever died
(eg get 325k instead of 175k)
can get both together
What about inheritance provisions act claim would make likely to settle?
How should u start negotiations?
Costs of proceedings borne by estate so diminish amount available for distribution
- good incentive for BOTH sides to settle
May start negotiations on basis that should receive entire estate but some compromise should be anticipated
Early application might put pressure on to settle
Explain using bank borrowing to pay IHT before grant.
Implication for solicitor
Disadvantages
Banks that don’t participate in voluntary scheme often allow if PRs give undertaking to repay loan
Solicitor often also required to provide undertaking so:
- limit to ‘such proceeds as come into the solicitor’s control’ (whether PR or not)
Spenny cos interest runs and charge arrangement fee
income tax relief available to PRs?
Income tax relief is available to the PRs for interest paid on a separate loan account in respect of IHT payable on personalty vesting in them.
^ in the context of bank borrowing to fund IHT.
Ok so if borrowed from bank to pay IHT, interest payable on that loan is deductible in PR’s income tax calc
In what 3 situs could deed of variation be used?
change entitlement received under
- will
- intestacy
- survivorship
‘I give my entire estate to such of my daughters who are living at my death and if more than one in equal shares.’
The woman was a widow and had one daughter as a result of her marriage. This daughter died six months before the woman, leaving a daughter (the granddaughter), now aged 12 years. For the last four years the woman was living with her boyfriend and his daughter (now aged 16 years). The woman and her boyfriend also have a daughter together, who is now aged two years.
Who gets entitlement to estate?
The granddaughter and two-year-old daughter will share the estate.
Even though predeceased by daughter, she has left a child. s33 Wills Act.
If will is silent, do legatees pay IHT on their legacies?
No
Borne by residue
Residue - how to phrase for client
rest of estate
Is will without a date valid?
Yes
But may cause issues if another will in existence at date of death.
Letter of ____ used to supplement a will?
He should leave a Letter of Wishes. The letter would not be binding on the trustees but it could be kept confidential by them and Albert could change the letter in future if the beneficiaries’ circumstances changed.
This can express how the funds should be invested or used for the benefit of the minor whilst held in trust.
(think) would also use this to say I don’t want ABC to benefit because XYZ
Order dealing w estate property
- property outside will
- assets under will
- any undisposed and therefore going under intestacy
better way of saying intermeddled / client-friendly
not assisted in administration of estate
how to describe intestacy rules to lay client
“as X did not leave a will, a set of rules determine who is to benefit from his estate”
Grant of probate - can it be inspected?
Yes
Public document
Also can view will as attached to grant of probate
(will email liz re grant administration)
can u always get money without grant from building socs/trustee banks/national savings etc?
what must it be less than?
no
must be 5k or less
(5 person fam heleN)
and discretion of institutions holding
Grant required to do what with (certain) assets in will?
Sell and/or transfer
Steps for applying for grant
- Pay required IHT
- non-instalment option: pay 6 months end month death
- instalment: can elect to pay later
- IHT400 and cheque for IHT due
(if not excepted) - 20 working days, apply grant
- pay fee
- complete form
- submit original will
(Form IHT421 confirming payment IHT will be submitted direct HMRC)
U can just say HMRC / HMCTS instead of long form
If law firm applying for grant probate, what steps follow
20 working days after submit IHT 400, will apply online by:
- Complete online form via My HMCTS account
- Submit original will and any supporting docs required and cover sheet
- Pay probate fee
(IHT421 will be submitted direct by HMRC)
Considerations re best interests of client in appoint professional executor?
Affairs complex/family disputes
Size of estate
Lay may be ok if both trustworthy
