The law and practice in connection with an application for a grant of representation

Question 1

Grant of representation:

Answer 1

document obtained from the court to prove the legal authority of the person to deal with a deceased person’s estate.

Question 2

PR:

Answer 2

person who has been issued with a grant to administer the estate.

Question 3

Grant is required to enable the PR to deal with…

Answer 3

the estate, sell the property and notify third parties that accounts will need to be closed.

Question 4

If the will appoints a PR, they are known as the?
and will obtain?

Answer 4

executor
The grant of representation known as the grant of probate.

Question 5

No will -
PR is known as?
and will obtain?

Answer 5

administrator
grant of representation called the letters of admin.

Question 6

Non-contentious probate business means:

Answer 6

Estates where the validity of a will is not at issue
AND there is no dispute about who is entitled to a grant of representation.

Question 7

Non-contentious probate rules 1987 (SI 1987/2024) regulate?

Answer 7

applications for non-contentious grants of probate and administration.

Question 8

No challenge or question as to the validity of a will…

grant is said to be made in?

Answer 8

grant of probate is made.
common form

Question 9

Person entitled to take out a grant applies for a grant in accordance with…

Answer 9

the non-contentious probate rules 1987.

Question 10

No other parties are involved, and the only evidence relied on is…

Answer 10

that of the applicant.

Question 11

Executors are appointed by?

Answer 11

the will and take a grant of probate.

Question 12

Will is valid and there is no executor willing to act…

Answer 12

grant will be of letters of admin with the will annexed.

Question 13

Order of priority of the persons entitled to a grant of administration with will annexed is governed by?

Answer 13

rule 20, non-contentious probate rules 1987.

Question 14

Deceased died without a valid will and is totally intestate, the person entitled to apply for?

Answer 14

grant of letters of admin are the same as those beneficiaries on the order of intestacy. (rule 22 non-contentious probate rules 1987).

Question 15

Property passed outside the estate can be…

Answer 15

realised or transferred with a grant.

Question 16

Non-contentious probate (amendment) rules 2018 (SI 2018-1137) in effect from?

Answer 16

27 November 2018.

Question 17

Replaced the requirement for the applicant to swear or affirm an oath with a requirement to?

Answer 17

make a statement of truth.

Question 18

Obtain the grant of representation the following documents must be sent to the probate registry:
Part 1

Answer 18

Original will and any codicil if the deceased died testate.
If required, affidavit evidence or a witness statement supported by a statement of truth to support –
Due execution where there is some doubt about the proper execution of the will.
Knowledge and approval of the contents of the will if the testator was blind, illiterate or there were suspicious circumstances.
Plight and condition of an altered or damaged will.
Lost or accidentally destroyed will where a copy has been submitted.

Question 19

Obtain the grant of representation the following documents must be sent to the probate registry:
Part 2:

Answer 19

A completed form IHT205 if the estate is excepted.
If not excepted estate, and inheritance tax is payable, a form IHT400 must be submitted to the HMRC with the payment of any IHT due before the grant.
HMRC will email a receipt to the Probate Registry following which the grant will be issued.

Question 20

Obtain the grant of representation the following documents must be sent to the probate registry:
Part 3:

Answer 20

Form PA1P (if there is a valid will) or a form PA1A (if no will) applying for the right to take a grant.
Probate fee
Any renunciations of the right to act as an executor (provided they have not intermeddled in the estate) or administrator (intermeddling not applicable to administrators).
An application for a grant under rule 20-22 must swear why those with priority are unable or unwilling to apply for the grant known as clearing off.

Question 21

Deceased person’s PR must value the deceased’s estate at the date of their death to determine…

Answer 21

its liability to IHT and report the value to HMRC.

Question 22

An individual dies they are considered to have made a transfer of value equal to?

Answer 22

the value of their estate immediately before their death (s.4(1) Inheritance Tax Act 1984) with the result that the estate can be liable to IHT.

Question 23

Value the estate, the PR must obtain the values of?

Answer 23

all the deceased assets and their liabilities and calculate whether the estate is liable to pay IHT and report to the HMRC accordingly.

Question 24

Basis for valuing each asset in the estate is the price the asset might reasonably be expected to obtain if?

Answer 24

sold in the open market at any time.

Question 25

For IHT purpose assets include:

Answer 25

Assets which the deceased could dispose of by their will, or which pass according to the intestacy rules.
Assets which pass to others (irrespective of a deceased’s will or the intestacy rules) such as joint property or nominated assets.
Assets included because of the application of certain statutory provisions.

Question 26

Liabilities which can be deducted from the value of an estate for IHT purposes include?

Answer 26

the deceased’s debts and reasonable funeral expenses.

Question 27

Liabilities are valued at the date of the deceased’s death including?

Answer 27

any interest that may have accrued to the debt at that time.

Question 28

Estate that qualifies as an excepted estate is one in which the executors don’t have to submit a…

Answer 28

full IHT account.

Question 29

If the estate is an excepted estate, the PRs must complete…

Answer 29

a form 1HT205 to send to probate registry with the application for the grant.

Question 30

Three types of expected estate:

Answer 30

Low value/small estates
Exempt estates
Non-domiciled estates

Question 31

Low value/small estates?

Answer 31

where the estate doesn’t exceed the current nil band rate.

Question 32

Exempt estates?

Answer 32

where the estate attracts the spouse/civil partner exemption or charity exemption.

Question 33

Non-domiciled estates?

Answer 33

where the deceased individual who died is domiciled outside the UK and has never been UK domiciled nor deemed domiciled and owned only limited assets to the UK.

Question 34

Form IHT400 must be used where?

Answer 34

the deceased died in the UK and the estate is not an excepted estate.

Question 35

Excepted estate is found to be not to be one?

Answer 35

a form 1HT400 must be submitted within 6 months.

Question 36

There are insufficient liquid assets in an estate to sell to pay IHT, PRs may…

Answer 36

have a power under the will to charge assets as security to raise funds to pay the IHT.

Question 37

Some banks and building societies will…

Answer 37

release funds for the payment of IHT from the deceased’s accounts (before the court issues a grant of representation) and cooperate with HMRC in a direct payment scheme.

Question 38

Possible sources of easily accessible funds to pay IHT include:

Answer 38

Bank and building society account
National savings products (accounts, certificates, and bonds)
Cash held in a portfolio of investments.
Investments held in a stockbroker, or investment manager’s nominee account, that is held in the firm’s name on behalf of the deceased.
Gilt-edged securities.
A loan from beneficiaries who have already received assets from the estate without the need for a grant.
Bank loan.

Question 39

IHT can be paid…

Answer 39

online/by telephone banking/BACS/CHAPS but not by cheque.

Question 40

IHT is primarily a charge on?

Answer 40

an individual’s estate on death.

Question 41

IHT can be payable on outright gifts made…

Answer 41

within 7 years of an individual’s death.

Question 42

Every individual has a nil rate band in which IHT is charged at?
On the remaining balance, the rate of tax is:

Answer 42

0%
20% for chargeable lifetime gifts.
40% on estates on death (or 36% where 10% or more of the net estate is given to charity).

Question 43

There are allowances, exemptions, and reliefs which reduce the amount of IHT payable, if?

Answer 43

certain conditions are met.

Question 44

Due date for when IHT is payable:

Answer 44

Non-instalment option property IHT must be paid before the grant is obtained, and in any event, is due within 6 months of the end of the month in which the death occurred.
For instalment option property, IHT is payable 6 months after the end of the month the deceased died or, if the instalment option is exercised (10 equal yearly instalments), first instalment is payable within the 6-month period and the remaining nine instalments at yearly intervals.

Question 45

Property with the instalment option are:

Answer 45

Land and buildings (e.g., the deceased’s home).
Farms
Farming business
Business or interest in a business
Timber

Question 46

PRs remain liable for the unpaid IHT attributable to assets they…

Answer 46

received and transferred to beneficiaries until such IHT liability is paid.