Wills and dying intestate

Question 1

Describe how a mutual Will operates (5)

Answer 1

• Mutual wills are wills made by two people
• Typically on the same terms
• With the agreement that neither party will later or revoke their will
• During lifetime without the others consent
• or after the first death

Question 2

Explain the implications for the living individual if the deceased had previously revoked their will before death (3)

Answer 2

• They are released from the obligation not to revoke/ they can change their will
• They have the right to sue for damages for breach of contract
• Although the amount is likely to be negligible in most cases

Question 3

Outline 8 duties that that the sole executor of a will, will need to perform (8)

Answer 3

• Determine the assets of the estate
• determine the liabilities of the estate/tax liabilities
• Pay any debts
• Collecting in the assets of the estate
• Completing the necessary accounts
• Paying any IHT
• Obtaining probate
• Distributing the estate in accordance with the will

Question 4

Describe the process if the sole executor is unable to act (3)

Answer 4

• Administrators will be appointed by the Probate Registry
• They will carry out the duties in the executors place

Question 5

Describe the duties of an executor of a will (9)

Answer 5

• Determine/collect the assets of the estate
• Determine/settle liabilities of the estate; including paying income tax and CGT
• Complete the necessary estate accounts/executors must complete an HRMC (IHT) account
• Showing any gifts made in the previous 7 years/ including any gifts with reservation
• Asses any unused % of the NRB from previously deceased spouse or civil partner
• Any IHT due must be paid before grant of probate can be issued to the executors
• Obtain probate
• Distribute the estate in accordance with the Will

Question 6

Explain the IHT NRB that can be claimed by the deceased executors (6)

Answer 6

• The deceased’s NRB £325k
• Plus their late spouses NRB - £325k
• Plus their Residential NRB
• Plus their spouses RNRB
• The RNRB is restricted to the value of the home less the mortgage

Question 7

State the requirements that must be satisfied in order to make a valid will (7)

Answer 7

• Must be aged 18 or over
• Must be of sound mind
• Under no pressure to make a will
• It must be in writing
• It must be signed by the testator/ person making the will
• Signature must be witnessed by two independent witnesses
• Witnesses must also sign