Wills and Administration of Estate

Question 1

Types of grant of representation

Answer 1

1. Probate
2. Letters of administration with will annexed
3. Letters of administration

Question 2

1. Probate

Answer 2

• appointed executors
• max 4 PR
• NCRP Rule 46
  -NCRP Rule 32
• fill PAP1 form to apply for grant

Question 3

NCRP Rule 46

Answer 3

If an executor does not want to act, a beneficiary can apply to court so that the executor makes a decision on whether to act. If the executor refuses, the co-executor will take on the role, if not, administrator.

Question 4

NCRP Rule 32

Answer 4

An executor can be a minor. But a minor cannot apply for probate. In that case the parents of the minor will be the administrators (until the minor reaches 18) UNLESS the minor is the sole executor and has no interest in the residuary estate, in which case the beneficiary entitled to the residuary will be the administrator until the minor comes of age.

Question 5

NCRP Rule 33

Answer 5

If the minor is a co-executor, probate can be granted to the other executor with a power reserved for the minor to apply to probate when they reach 18.

Question 6

2. Letters of administration with will annexed

Answer 6

• no executor
  -Rule 20: In order the priority
• Max 4 PR, if any beneficiary is a life tenant or minor -> two or more administrators must take out the grant.
• fill PAP1 form to apply for grant

Question 7

NCRP Rule 20

Answer 7

With no executors, this order of priority applies for grant:
1. Any named executor (if any)
2. Trustee of the residuary estate
3. Any other residuary beneficiary or a beneficiary under the estate if there is partial intestacy
4. The PRs of the residuary beneficiary (unless taking as life tenants) or the partial intestacy beneficiary (if either dead)
5. Any other beneficiary or creditor
6. PR of any other beneficiary or creditor if dead

Question 8

3. Letters of administration

Answer 8

• no will (intestafcy)
• Rule 22 (1): the order of priority of people who can apply for the grant and be appointed as administrator
• To apply for grant, administrators must file -> PA1A

Question 9

NCRP Rule 22 (1)

Answer 9

The intestacy order of priority of people who can apply for the grant and be appointed as administrator.

Question 10

IHT excepted estates

Answer 10

1. Low value : less than 325,000 NRP (gross)
2. Exempt excepted estate : 325,000 - 3 million NRB and after the spouse and charity exemptions have been applied falls below 325,000
   (If the PRs are claiming a double NRB, due to a transfer from a spouse, the NRB threshold is doubled to 650,000)

Question 11

Estate will not be excepted if any of the following factors apply

Answer 11

• The deceased gave gifts were that were paid into trusts
• made a GROB in their lifetime (gift with reservation of benefits - means the deceased gave a gift but continued to enjoy it afterwards for 7 years before death
• The deceased was deemed domiciled in the UK or was living permanently outside of the UK when they died but had lived in the UK previously
• increased payable pension while terminally ill or in poor health
• annuity and life insurance paid out to other than the spouse/CP
• foreign property more than 100k
• the estate contains an interest in more than one trust
• the estate has an interest in a trust more than 250k
• in the 7 years before death the total value of non-exempt gifts made by the deceased exceed 250k
• assets held in trust pass to spouse /CP or charity are worth 1m or more, or 250k or more after the deduction of the spouse and charity exemptions.

IF ANY OF THE FACTORS APPLY, HMRC NEEDS TO BE INFORMED, EVEN IF NO IHT IS PAYABLE. SEND THE IHT400 TO HMRC

Question 12

NCRP Rules for valid will

Answer 12

r12(1) : if no attestation clause in will or registerar has doubts regarding to validity of will -> the executors will need to submit an affidavit fiven by one or more the witnesses to the will

r13 : there is some doubt about the testator’s having the required knowledge -> registrar need to proof that

r14(1) : doubt about the validity of alteration -> the registrar will require evidence to show that alteration is ok

r14(2) : if the will incorporates another external document or contains a reference to another document, that document will need to be submitted.

r14(3) : doubt about the date the will executed

r8(1) : statement of truth signed by PRs

r8(4) : if they are an administrator, why they are the appropriate person + are there any minor or life interests under the will/intestacy

• Receipted IHT 421
• Death certificate
• Probate court fee 273 sterling

r6(2) : For both excepted or non-excepted estates, the probate registry will not issue if:
+ a grant of probate / letters of administration wil will annexed less than 7 days after the death
+ a grant of letters of administration less than 14 days after death