Wills and Administration of Estates Flashcards
Valid Will (3)
- Held capacity when will is made
- Intended to make will
- Executed will in accordance with formalities
Legal Formalities for Will Creation (5)
- In Writing
- Signed by the Testator
- Signed or Acknowledged by Testator in presence of two or more witnesses
- Signed by witnesses in presence of testator
- Does not apply to privileged wills
Grounds for Will Challenge (4)
- Force
- Fear
- Fraud
- Undue Influence
Will Revocation (3)
- New will executed
- Marriage unless intended to marry specific person
- Divorce
Mutual Wills
The agreement creates a constructive trust
Types of Legacy Gifts (4)
- Specific - Gift of particular asset
- General - Gift that does not identify particular item
- Pecuniary - Gift of cash
- Residuary - gift of rest of deceased’s estate
Devise
Gift of Real Property
Failure of Gift (2)
- Doctrine of Ademption - Specific gift fails if it no longer part of the estate
- Lapse - if beneficiary dies before testator, the gift fails
Step-Children
Don’t count as children
Class Closing Rules
Class closes when at least one benificiary has vested interest
Intestate Succession (3)
- Survived by spouse atleast 28 days - receives everything
- If Children, spouse receives personal chattels, 322k and 50% of remaining assets, matrimonial home in partial or total satisification
- Children take remaining 50%
Order of Entitlement if no spouse (8)
- Issue
- Parents
- Brother and Sisters of Whole Blood
- Brothers and Sisters of Half Blood
- Grandparents
- Uncle and Aunt of Whole Blood
- Uncle and Aunt of Half Blood
- Crown
Property owned as Joint Tenants (2)
- Passes outside of Will or Intestacy
- Part of the deceased estate for IHT
Life Interest Trusts (2)
- Do not pass by will or intestacy
- May be subject to IHT
Gift in which donor retained benefit (2)
- Does not pass by will or intestacy
- Part of IHT
Executor can renounce if they don’t get probate (5)
- In writing
- Statement that they have intermeddled
- Witness with no interest
- Filed at Probate Office
- Cannot rennounce part or reclaim
Grants of Representation (3)
- Legal document that confirms person’s ability to administer an estate
- Government provided investments provided does not exceed 5000 quid
- Tangible property can be sold without grant of representation
Grants of Probate
Valid Will names one or more executors who are willing and able to act
Grants of Letters of Administration with Will Annexed
Valid Will but no executor able and willing to act
Grants of Letters of Administration
Deceased without will
Grants de bonis non
Second grant needs when last PR dies or previous grant prevoked
Pre-Grant Procedure: Ways to pay tax liability
- Ask deceased bank
- Loan from bank or beneficiary
- Life Assurance policy proceeds
- Sell Estate Assets
- HMRC may allow the grant to be obtained on credit if the PRs can demonstrate it is impossible to pay the tax in advance
Inheritance Tax: PR Deliver account
12 months. In practice, earlier because interest runs from 6 months
Excepted Estate (2)
- Does not exceed 325k or 3 million and the net chargeable estate does not exceed IHT threshold
- Non-UK domiciled estate if UK estate is cash and/or quoted shares which do not total more than 150,000
Duties of Personal Representatives (7)
- Collect monies due and other assets that vest in them
- Administer the estate
- Pay debts and legacies, distribute estates
- Comply with standard of care
- Trustee Act 2000 applies
- Reasonable care and skill
- Best interest of beneficiaries
PR Liability (3)
- May be sued for breach
- Court can relieve PR if acted honestly and reasonable and ought fairly to be excused
- Testator can exclude PR liability
Powers of PR (9)
- Sell, mortgage or lease assets
- Appropriate
- Appoint trustees of property for minor
- Maintain minor
- Advance capital
- Insure
- Delegate
- Indemnify for Expenses
- Run deceased’s business
Protection of PRs (4)
- Comply with s.27
- Place advert in London Gazette, Local newspapers, trade publications
- Creditors and beneficiaries must have atleast two month period to approach
- Wait 6 months before distributing estate
Payment of Debts: Solvent Estate (Unsecured Debts) (6)
- Property not disposed of in will
- Property which forms part of the residue
- Property given for payment of debts
- Property specifically charged with debt payments
- Fun for pecuniary legacies unless testator specified otherwise (abate proportionately)
6 Property specifically bequeathed or devised
Payment of Debts: Insolvent Estate (Order of Creditors) (5)
- Funeral, Testamentary and Admin
- Preferred Debts (maximum 800 each)
- Ordinary Debts
- Interests on preferred and ordinary debts
- Deferred debts
Claims under the 1975 Act (2)
- Reasonable financial provision not made for them
- Spouse, Ex-Spouse if not remarried, Child or Person treated as Child, Person Maintained, Person who cohabited with deceased for atleast two years
Payment of Legacies (4)
- Chattels - Handed Over
- Stocks and Shares - Transfer Form
- Property- Conveyancing by Deed
- Pecuniary Legacies - Residue
