WAE - Time Limits Flashcards
Statutory order of entitlement on intestacy
Intestacy
- Spouse
- Children
- Parents
- Siblings
- Siblings (half-blood)
- Grandparents
- Uncles/aunts
- Uncles/aunts (half-blood)
- Crown
When must an application from a spouse to appropriate marital home in satisfaction of their statutory entitlements be made
Intestacy
12 months from grant of probate
For gifts of a collection (inc. shares), what is the presumption of the date from which the will speaks?
Will Drafting
Date of death (unless rebutted by wording)
For gifts of property, what is the presumption of the date from which the will speaks?
Will Drafting
Date of death (unless rebutted by wording)
For gifts to a specified person, what is the presumption of the date from which the will speaks?
Will Drafting
Date of execution
Who will ‘children’ include in a will
Will Drafting
Blood & adopted NOT step
When is a class deemed to close?
Will Drafting
When a member becomes entitled to possession
Assessment of value for IHT on lifetime transfers
IHT
Loss in value to donor
Assessment of value for IHT on death transfers
IHT
Market value
what is the NRB (nil rate band)
IHT
£325,000
What is the TNRB (Transferred Nil Rate Band)
IHT
£325,000
What is the RNRB (Residence Nil Rate Band)
IHT
£175,000
Deadline for surviving spouse’s PR have to make a claim for TNRB
IHT
2 years from end of month of death OR 3 months from PRs first acting
Deadline for IHT400
IHT
12 months from end of month of death
Deadline for paying IHT after death
IHT
6 months from end of month of death
Who can family maintenance payments be made out to
IHT
Spouse(/former in divorce settlement), child, adult child in full time education, dependant relative for their ‘care’
What is the amount for marriage exemption in lifetime gifts
IHT
£5,000 if made by a parent
£2,500 if made by one party of the marriage to the other
£2,500 if made by their remoter ancestor (e.g. grandparent to grandchild - direct lineage)
£1,000 in any case
Business Property Relief for quoted shares (PLC)
IHT
50% if 50% controlling share
Business Property Relief for unquoted shares (Ltd)
IHT
100%
BPR for interest in a business (Sole trader or Partner)
IHT
100%
Time requirement to have held BPR asset
IHT
2 years continuously
Time requirements for APR
IHT
Occupied for agricultural purposes in 2 years before transfer OR owned and occupied by them/another for 7 years prior
Rate for APR
IHT
100%
Priority on assets that qualify for APR and BPR
IHT
APR
Time limit for PRs completing administration
Administration
12 months
how long to wait after a s27 notice (Law Gazette) before distributing
Administration
2 months
Time missing for effective Presumption of Death Act
Administration
7 years
Max/Min number of executors
Administration
1 (Min 2 required if life or minor interest)/4
Order of entitlement NCPR 20 (with will)
administration
- Executor
- Trustee of the residuary estate
- Any residuary beneficiary
- PRs of any residuary beneficiary other than a trustees or life tenant of the residue
- Any other beneficiary or a creditor
- PRs of any other beneficiary or a creditor
Order of entitlement NCPR 22 (no will)
Administration
- Surviving spouse/CP
- Children of the deceased
- Father and mother of the deceased
- Whole blood siblings
- Half-blood siblings
- Grandparents
- Uncles/aunts of whole blood
- crown
- creditor
Time limit for making IPFDA claim
Administration
6 months from grant of probate (+ court disc.)
IPFDA applicants
Administration
Spouse
Former spouse not remarried
2 year cohabitee
Child
Treated as a child
Others financially maintained
what form do applicants use to prove they are entitled to a grant either through paper application or online
Administration
PA1P (will)/PA1A (no will);
Which estates do you need to pay a probate registry fee for
Administration
All estates (but no fee for estates worth less than £5,000)
what options are there for PR protection
Administration
- Seek court directions
- s48 AJA application
- s27 TA notice [UNKNOWN]:
- Benjamin Order [KNOWN BUT MISSING]:
- Presumption of Death Act:
- Insurance:
- Payments into court
- Indemnity from B:
- s61 TA
- Exemption clauses in a will
What is the statutory order to repay Unsecured Debts
Administration
- Property not disposed of by a will
- Residue
- Property the will sets aside
- Money in the pecuniary legacy fund (initially preserved)
- Property specifically given
- Express wording in a will can override the statutory order where contrary intention is shown
what are the stages for calculating LCT tax
IHT: Lifetime
- calculate cumulative total
- identify value transferred
- apply exemptions & reliefs
- apply basic NRB and calculate tax
(next steps only after death) - Apply taper relief
- give credit for tax in lifetime
what is the penalty for breaching the general anti-abuse tule
Tax anti-avoidance
must counteract the abusive effect by making “just & reasonable” adjustments + 60% penalty
what are the steps for calculating IHT in the death estate
IHT: Death estate
- Calculate cumulative total
- identify assets included in the taxable estate
- value the taxable estate
- deduct debts and expenses
- apply exemptions and reliefs
- apply RNRB
- apply basic NRB/TNRB & calculate tax
Quick Succession relief
Taper and calculation
100% year 0-1
80% year 1-2
60% year 2-3
40% year 3-4
20% year 4-5
(Estate 1 Gross – tax paid on E1) ÷ Estate 2 Gross x tax paid on E2
valuation of property on the open market (shares)
out of the highest and lowest daily rate = lowest number plus 1/4 difference
what are specific and general gifts
**SPECIFIC GIFTS: **
* specific item distinguished from other similar-type property (“My”)
* “my” = contrary intention takes effect from DATE OF EXECUTION of the will FAILS if no longer owns at death + no express substitute
Collections
* “my” = takes effect from DATE OF DEATH
GENERAL LEGACIES:
* property isn’t distinguished from property of a similar type (“A”)
* If don’t own, PRs would have to buy
