Wills

Question 1

What makes a valid Will?

Answer 1

• 18 y/o +
• Sound mind
• under no pressure to make the will
• Must be signed by person making it
• Must have 2 witnesses

Question 2

What are the duties of the Executor of a Will?

Answer 2

• Determine Assets and liabilities of estate
• Collect assets and pay debts inc. tax
• obtain probate
• Distribute assets in-line with Will

Question 3

What is a Mutual Will?

Answer 3

• 2 people dispose of assets in an identical way
• Must be agreement to make the wills and not revoke them without the consent of the other
• On first death, a constructive will (imposed by law) is made as it would be fraudulent for the survivor to change their will as first death stuck to the mutual agreement

Question 4

What are Mirror Wills?

Answer 4

• When spouses make near identical wills
• e.g. to each other then the children
• Non-binding

Question 5

Rules of Intestacy

Answer 5

• Just spouse - All to them
• Spouse and Issue:
  
  • Spouse - First £322,000 and Personal Chattels
    - 50% of remaining estate
  • Issue - 50% of remaining estate (split between them)

Question 6

What conditions have to be met to make a Deed of Variation?

Answer 6

• Must be over 18 and of sound mind
• Must refer to will or intestacy
• Signed by all beneficiaries of the asset/assets
• Must be within 2 years of death
• must have a statement that the variation is to have effect for IHT as if deceased made it
• Signed by personal representatives
• no consideration for money or moneys worth

Question 7

Explain the UK Income Tax position of the estate the deceased

Answer 7

• If personal representative is not resident in the UK
  
  • Not taxed in UK
• If 1 personal representative is UK resident
  
  • If deceased domiciled in UK - taxed in UK on all income
  • If not domiciled in UK - taxed only on UK income

Question 8

Explain the CGT Tax Position of the estate the deceased

Answer 8

• Personal representative take on residence status
• PR liable to CGT on disposals in administration period
• entitled to annual CGT exemption for year of death and 2 following
• Not CGT on passing assets to beneficiaries