Wills

Question 1

Rectification

Answer 1

1) A clerical error

2) A failure to understand testator’s instructions

Question 2

Installment Option IHT

Answer 2

1) Land

2) A busness or interest in business

3) Controlling Shares

4) Unquoted non-controlling shares (undue hardship, holding sufficiently large, 20% IHT)

Question 3

Assets for which grant not required

Answer 3

1) Assets with a value of under 5,000 up to discretion of institutions involved

2) Chattels

3) Cash

Question 4

How long after IHT400 to apply for grant?

Answer 4

Allow for 20 working days

Question 5

Funding the IHT: Options (8)

Answer 5

1) Direct Payment Scheme (voluntary bank scheme slow process so solicitors can make private arrangements)

2) Life Insurance Policy (check if ok)

3) 5,000 assets thing

4) Loans from Beneficiaries

5) Bank Borrowing (pay interest: income tax relief)

6) National Savings (bull)

7) Heritage Property

8) Obtaining grant on credit (exceptionally)

Question 6

Paying income tax: complex not complex

Answer 6

If estate not complex can be paid in one lump sum (but CGT on residential land 60 days of completion)

If estate complex must make tax return:

a) Value of estate exceeds 2.5 million

b) Tax due for whole administration exceeds 10,000

c) Value of assets sold in the year exceeds 500,000

Question 7

Timelimit claims PRs

Answer 7

12 years

Proprietary: unless bona fide purchaser for value

Personal: all claims against PRs exhausted

Creditors rights: 6 years (defense PRs unaware)

Question 8

Process of applying for grant

Answer 8

1) IHT400

2) 20 working days then apply for grant post or online (MY HMCTS or PA1A or PA1P) submit og will and supporting documents and pay fee

3) HMRC will send HMCTS form IHT421confirming payment of IHT)