Wills 8

Question 1

What 10 pieces of information are required to apply for a grant of representation?

Answer 1

• Full personal details of the deceased, family, dependants, PRs, and beneficiaries* Details of assets and liabilities* Lifetime gifts in the seven years prior to the death* Death certificate* Original will and any codicils* Identifying the nature and extent of beneficiaries’ interests (including under intestacy rules, if relevant)* Asset and liability paperwork* Details of any insurances * Immediate financial needs of any family members and * Details of funds that can be accessed without a grant, for example, pension lump sum benefits, life assurance policies in trust, and jointly owned bank accounts.

Question 2

In addition to gathering relevant information for the application for a grant of probate, what are a PRs 6 other key tasks before making the application?

Answer 2

• Registering the death (by sending a copy of the death certificate or a letter certifying the death) with banks and insurance companies, companies in which the deceased owned shares, Her Majesty’s Revenue and Customs (‘HMRC’), and the deceased’s creditors (and possibly make funeral arrangements) * Obtaining valuations of assets, including using surveyors for land and unquoted company shares* Considering the validity of a will and possible claimants against the estate; The will should: (1) be the last will of the testator, (2) not be validly revoked, (3) be executed in accordance with the statutory will formalities, and (4) contain an attestation clause which raises the presumption of due execution* Notifying beneficiaries of potential entitlements (subject to the will being admitted to probate and the satisfaction of any liabilities) and * Placing early advertising for unknown beneficiaries and creditors. Executors can do this from the date of death, and administrators can do it from the date of obtaining the grant. If the PRs are unsure as to what notices should be given, they should apply to the court for guidance.

Question 3

What 4 things should the PR ensure in relation to the validity of the will?

Answer 3

The will should:(1) be the last will of the testator, (2) not be validly revoked, (3) be executed in accordance with the statutory will formalities, and (4) contain an attestation clause which raises the presumption of due execution

Question 4

From what point can an early advertisement for unknown beneficiaries and creditors be made by:* executors* administrators

Answer 4

Executors: date of deathAdministrators: date of obtaining grant

Question 5

What 6 options may be available to PRs to pay IHT?

Answer 5

• Banks and building societies may (it is a voluntary scheme) release the deceased’s account funds directly to HMRC to pay IHT before the grant is obtained. A form IHT423 has to be completed and sent to the bank for each relevant account. Funds may be used to cover funeral expenses in a similar way.* Bank loan - usually an undertaking has to be given by the PRs and/or their solicitor to account to the lender from the first proceeds of realisation of estate assets* Loan from a beneficiary* Sale of assets if no grant is needed prior to sale e.g. chattels or quoted shares* Insurance policy payments - if the proceeds of life assurance are payable to the estate, the insurance company may pay them directly to HMRC* In exceptional cases, HMRC may allow the grant to be obtained on credit if the PRs can demonstrate it is impossible to pay the tax in advance.

Question 6

What happens first: * payment of IHT* grant of representation?

Answer 6

If IHT is due, this must be paid by the PRs first in order to obtain the grant.

Question 7

What is the deadline for payment of IHT?

Answer 7

The expiry of six months from the end of the month in which the deceased died, after which date interest will start to be charged.* Note, in some cases, IHT is payable in 10 installments and the first payment will be due by this deadline.