sqe2 Flashcards

1
Q

who cannot validly witness will

A

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

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2
Q

when must Ws be present at same time and when o need

A
  • 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
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3
Q

how to end letter re bereavement

A

“I am very sorry to hear of ___ ‘s death”

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4
Q

Possible wills next steps

A
  • 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
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5
Q

What do I always forget about NRB

A

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

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6
Q

What about inheritance provisions act claim would make likely to settle?

How should u start negotiations?

A

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

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7
Q

Explain using bank borrowing to pay IHT before grant.

Implication for solicitor

Disadvantages

A

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

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8
Q

income tax relief available to PRs?

A

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

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9
Q

In what 3 situs could deed of variation be used?

A

change entitlement received under

  1. will
  2. intestacy
  3. survivorship
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10
Q

‘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?

A

The granddaughter and two-year-old daughter will share the estate.

Even though predeceased by daughter, she has left a child. s33 Wills Act.

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11
Q

If will is silent, do legatees pay IHT on their legacies?

A

No

Borne by residue

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12
Q

Residue - how to phrase for client

A

rest of estate

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13
Q

Is will without a date valid?

A

Yes

But may cause issues if another will in existence at date of death.

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14
Q

Letter of ____ used to supplement a will?

A

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

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15
Q

Order dealing w estate property

A
  1. property outside will
  2. assets under will
  3. any undisposed and therefore going under intestacy
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16
Q

better way of saying intermeddled / client-friendly

A

not assisted in administration of estate

17
Q

how to describe intestacy rules to lay client

A

“as X did not leave a will, a set of rules determine who is to benefit from his estate”

18
Q

Grant of probate - can it be inspected?

A

Yes

Public document

Also can view will as attached to grant of probate

(will email liz re grant administration)

19
Q

can u always get money without grant from building socs/trustee banks/national savings etc?

what must it be less than?

A

no

must be 5k or less
(5 person fam heleN)

and discretion of institutions holding

20
Q

Grant required to do what with (certain) assets in will?

A

Sell and/or transfer

21
Q

Steps for applying for grant

A
  1. Pay required IHT
  • non-instalment option: pay 6 months end month death
  • instalment: can elect to pay later
  1. IHT400 and cheque for IHT due
    (if not excepted)
  2. 20 working days, apply grant
    - pay fee
    - complete form
    - submit original will

(Form IHT421 confirming payment IHT will be submitted direct HMRC)

22
Q

U can just say HMRC / HMCTS instead of long form

A
23
Q

If law firm applying for grant probate, what steps follow

A

20 working days after submit IHT 400, will apply online by:

  1. Complete online form via My HMCTS account
  2. Submit original will and any supporting docs required and cover sheet
  3. Pay probate fee

(IHT421 will be submitted direct by HMRC)

24
Q

Considerations re best interests of client in appoint professional executor?

A

Affairs complex/family disputes

Size of estate

Lay may be ok if both trustworthy