Wills Flashcards
What percentage of the net chargeable estate must be left to charity to qualify for a reduced inheritance tax rate?
At least 10%.
What must be made before the personal representative can apply for the grant?
The initial payment of inheritance tax (IHT).
Can a property be sold to fund IHT without a grant?
No, a grant is needed as evidence of the executor’s authority to sell the property.
What is the maximum amount payable for wages and salaries of the deceased’s employees in the four months prior to death?
£800 each.
What is presumed if a will is found mutilated upon the testator’s death?
The testator intended to revoke the will.
How should secured debts be paid in an estate?
From the asset against which they are secured.
How are unsecured debts paid in an estate?
From the residuary estate, not specific legacies.
How many administrators are required if there is a minor beneficiary?
A minimum of two administrators.
Does a wife automatically have the best entitlement to act as administrator under rule 20 NCPR?
No, not if she is not a beneficiary of the will.
What is a Benjamin Order?
A court order allowing the personal representative to distribute the estate considering the interests of a known claimant who cannot be found.
How long do individuals have to make financial provision claims under the Inheritance Act 1975?
Six months.
What is required for a variation to be effective for tax purposes?
It must be in writing, made within two years of death, and not for monetary consideration.
How long must a partner have lived with the deceased to make a claim on the estate?
At least two years immediately before death.
What is the power of appropriation?
Executors can use an alternative asset to satisfy a legacy, with the beneficiary’s consent unless the will states otherwise.
What are the criteria for an estate to be excepted from IHT?
Total gross value plus specified transfers must not exceed £325,000 or £3 million if the net chargeable estate is below the threshold.
