WAE - Time Limits

Question 1

Statutory order of entitlement on intestacy

Intestacy

Answer 1

1. Spouse
2. Children
3. Parents
4. Siblings
5. Siblings (half-blood)
6. Grandparents
7. Uncles/aunts
8. Uncles/aunts (half-blood)
9. Crown

Question 2

When must an application from a spouse to appropriate marital home in satisfaction of their statutory entitlements be made

Intestacy

Answer 2

12 months from grant of probate

Question 3

For gifts of a collection (inc. shares), what is the presumption of the date from which the will speaks?

Will Drafting

Answer 3

Date of death (unless rebutted by wording)

Question 4

For gifts of property, what is the presumption of the date from which the will speaks?

Will Drafting

Answer 4

Date of death (unless rebutted by wording)

Question 5

For gifts to a specified person, what is the presumption of the date from which the will speaks?

Will Drafting

Answer 5

Date of execution

Question 6

Who will ‘children’ include in a will

Will Drafting

Answer 6

Blood & adopted NOT step

Question 7

When is a class deemed to close?

Will Drafting

Answer 7

When a member becomes entitled to possession

Question 8

Assessment of value for IHT on lifetime transfers

IHT

Answer 8

Loss in value to donor

Question 9

Assessment of value for IHT on death transfers

IHT

Answer 9

Market value

Question 10

what is the NRB (nil rate band)

IHT

Answer 10

£325,000

Question 11

What is the TNRB (Transferred Nil Rate Band)

IHT

Answer 11

£325,000

Question 12

What is the RNRB (Residence Nil Rate Band)

IHT

Answer 12

£175,000

Question 13

Deadline for surviving spouse’s PR have to make a claim for TNRB

IHT

Answer 13

2 years from end of month of death OR 3 months from PRs first acting

Question 14

Deadline for IHT400

IHT

Answer 14

12 months from end of month of death

Question 15

Deadline for paying IHT after death

IHT

Answer 15

6 months from end of month of death

Question 16

Who can family maintenance payments be made out to

IHT

Answer 16

Spouse(/former in divorce settlement), child, adult child in full time education, dependant relative for their ‘care’

Question 17

What is the amount for marriage exemption in lifetime gifts

IHT

Answer 17

£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

Question 18

Business Property Relief for quoted shares (PLC)

IHT

Answer 18

50% if 50% controlling share

Question 19

Business Property Relief for unquoted shares (Ltd)

IHT

Answer 19

100%

Question 20

BPR for interest in a business (Sole trader or Partner)

IHT

Answer 20

100%

Question 21

Time requirement to have held BPR asset

IHT

Answer 21

2 years continuously

Question 22

Time requirements for APR

IHT

Answer 22

Occupied for agricultural purposes in 2 years before transfer OR owned and occupied by them/another for 7 years prior

Question 23

Rate for APR

IHT

Answer 23

100%

Question 24

Priority on assets that qualify for APR and BPR

IHT

Answer 24

APR

Question 25

Time limit for PRs completing administration | Administration

Answer 25

12 months

Question 26

how long to wait after a s27 notice (Law Gazette) before distributing | Administration

Answer 26

2 months

Question 27

Time missing for effective Presumption of Death Act | Administration

Answer 27

7 years

Question 28

Max/Min number of executors | Administration

Answer 28

1 (Min 2 required if life or minor interest)/4

Question 29

Order of entitlement NCPR 20 (with will) | administration

Answer 29

1. Executor 2. Trustee of the residuary estate 3. Any residuary beneficiary 4. PRs of any residuary beneficiary other than a trustees or life tenant of the residue 5. Any other beneficiary or a creditor 6. PRs of any other beneficiary or a creditor

Question 30

Order of entitlement NCPR 22 (no will) | Administration

Answer 30

1. Surviving spouse/CP 2. Children of the deceased 3. Father and mother of the deceased 4. Whole blood siblings 5. Half-blood siblings 6. Grandparents 7. Uncles/aunts of whole blood 8. crown 9. creditor

Question 31

Time limit for making IPFDA claim | Administration

Answer 31

6 months from grant of probate (+ court disc.)

Question 32

IPFDA applicants | Administration

Answer 32

Spouse Former spouse not remarried 2 year cohabitee Child Treated as a child Others financially maintained

Question 33

what form do applicants use to prove they are entitled to a grant either through paper application or online | Administration

Answer 33

PA1P (will)/PA1A (no will);

Question 34

Which estates do you need to pay a probate registry fee for | Administration

Answer 34

All estates (but no fee for estates worth less than £5,000)

Question 35

what options are there for PR protection | Administration

Answer 35

1. Seek court directions 2. s48 AJA application 3. s27 TA notice [UNKNOWN]: 4. Benjamin Order [KNOWN BUT MISSING]: 5. Presumption of Death Act: 6. Insurance: 7. Payments into court 8. Indemnity from B: 9. s61 TA 10. Exemption clauses in a will

Question 36

What is the statutory order to repay Unsecured Debts | Administration

Answer 36

1. Property not disposed of by a will 2. Residue 3. Property the will sets aside 4. Money in the pecuniary legacy fund (initially preserved) 5. Property specifically given * Express wording in a will can override the statutory order where contrary intention is shown

Question 37

what are the stages for calculating LCT tax | IHT: Lifetime

Answer 37

1. calculate cumulative total 2. identify value transferred 3. apply exemptions & reliefs 4. apply basic NRB and calculate tax (next steps only after death) 5. Apply taper relief 6. give credit for tax in lifetime

Question 38

what is the penalty for breaching the general anti-abuse tule | Tax anti-avoidance

Answer 38

must counteract the abusive effect by making “just & reasonable” adjustments + 60% penalty

Question 39

what are the steps for calculating IHT in the death estate | IHT: Death estate

Answer 39

1. Calculate cumulative total 2. identify assets included in the taxable estate 3. value the taxable estate 4. deduct debts and expenses 5. apply exemptions and reliefs 6. apply RNRB 7. apply basic NRB/TNRB & calculate tax

Question 40

Quick Succession relief Taper and calculation

Answer 40

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

Question 41

valuation of property on the open market (shares)

Answer 41

out of the highest and lowest daily rate = lowest number plus 1/4 difference

Question 42

what are specific and general gifts

Answer 42

**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