The estate Flashcards
What assets fall outside the distribution estate? (6)
- life insurance policy written in trust
- discretionary pension
- joint property
- life tenant interest (the remainder)
- DMC
- statutory nominations
What assets fall outside the taxable estate? (3)
- remainder interest
- discretionary pension
- life insurance written in trust
What are the 3 requirements to bring a claim against the estate under IPFDA?
- live in same country the deceased died
- fall in recognised category
- within time limit
What is the time limit to bring a claim under IPFDA? Can it be extended?
6 months from the grant of representation
Yes, court has discretion to extend but must show special reasons
How much will the courts award under IPFDA? What factors will they consider? (4)
It at the court’s discretion so they may award nothing at all!
The courts will consider:
i. size of net estate
ii. financial need
iii. responsibilities of deceased to applicant
iv. specific needs
What is the IPFDA all about?
reasonable financial provision
What orders may the court give under IPFDA? (3)
- periodical payments
- lump sum
- transfer property
Name 3 ways you can change the estate distribution after the testator has died?
- variation
- disclaim
- precatory trust
What are the formalities for variation? (4)
- in writing
- within 2 years following deceased’s death
- express statement stating s142 should apply
- no consideration
What is s142? What if additional IHT is payable?
s142: treated as though deceased made gift to new beneficiary
PRs should: i) sign variation ii) provide HMRC with copy and pay
What is s62?
Made as though new beneficiary acquired gift at date of death value (not date of variation)
What are the 3 rules to disclaim a gift?
- before acceptance
- whole gift
- destination is determined by will or intestacy rules
What 2 variations does s142 and s62 apply to?
- variation
- disclaim
