Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

SQE 2 (MINE) > Wills / Probate > Flashcards

Wills / Probate Flashcards

1
Q

What property passes outside the will?

A

1) joint property - joint tenancy = survivorship
2) insurance policies
3) pension
4) trust property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Requirements for a valid will?

A

1) capacity
2) intention
3) formalities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When is there not an assumption of knowledge and approval?

A

When blind/ illiterate / suspicious circumstances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How is an attestation clause written?

A

Signed by T in our joint presence and then by us in his/hers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What happens if no attestation clause?

A

Affidavit of due execution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is s1 wills act?

A

If more than 2 witnesses to a will and beneficiary gifted then that gift can be allowed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

When is there not presumed intention of a will?

A

1) if T blind or illiterate
2) where another signed on behalf of T
3) suspicious circumstances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Ask client about overseas assets

A

1) foreign assets might not pass under UK will
2) a new UK will may revoke a foreign will

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Inheritance tax reliefs? (Not lifetime gifts)

A

1) agricultural property relief - farmer leave farmland to next of kin without tax - owned two years (50% or 100%)
2) charity exemption
3) business assets owned for over 2 years (business property relief) either 50% or 100%
4) spouse - if left all to spouse then they can take allowance of £325k and add to hers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is current tax free nil rate band?

A

£325k

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When is charity exemption

A

If 10% of net estate left to charity then 36% not 40%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is net estate for IHT

A

Assets - debts and exemptions(bar charity exemption), reliefs and NRB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is transferable NRB?

A

If partner dies without using all of NRB then the remainder can be transferred to surviving spouse for when they pass

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is residence nil rate band?

A

IHT free amount up £175,000
- extra amount added to NRB
- estate must pass to lineal descendant
- as long as property after July 2015, even if sold it, would still benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Lifetime gifts

A

Potentially exempt. Become exempt after 7 years. If dies within then becomes a chargeable transfer

(Lifetime gifts to spouse and charity exempt from outset)

£3k a year are not subject to IHT
(Unused can be carried forward one year so max £6k)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What s for valid will?

A

S9 Wills Act 1837

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is survivorship clause of will!

A

Include time someone must survive you for

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How to revoke a will?

A
  1. Marriage
  2. Destruction
  3. Further condicil
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When is a will not revoked by marriage

A
  1. Made in expectation of forthcoming marriage
  2. T does not intend for will to be revoked by marriage
20
Q

When are alterations to a will valid?

A

Only if executed like a will eg signed, in presence of witness who attest

21
Q

How many executors if minor child?

A

2 minimum if administrators (intestacy)

1 minimum if executors (will)

22
Q

What is s29 Trustee Act

A

Reasonable remuneration to a trustee for time spent and work done but only if T is:
1) Trust corporation
2) T “acting in a professional capacity”

23
Q

What does divorce have on effect of executors?

A

Remove former spouse from the will entirely

24
Q

When can you renounce executorship?

A

When not meddled/ assisted

Or could ask to have power reserved

25
Q

Impact of general legacy being sold?

A

T pay it out of the estate

26
Q

What is a longstop beneficiary?

A

Outcome effective if all other benes deceased

27
Q

Can executor witness will?

A

Yes but cant be beneficiary if witnessed

28
Q

What is the rule in strong v bird

A

If executor and debtor of estate, cannot bring action against themselves

  • appointing as executor showed loan was a gift as Ts must call in debts to estate and cant call one onself
29
Q

What are two types of business property relief?

A

100%~ where value attributable to certain property eg business/ company shares

50%~ where attributable to other business property eg shares in stock exchange / land, machinery

30
Q

What is yearly annual exemption for lifetime transfers?

A

£3k - can transfer next year so max £6k
AND
Small gifts of £250 or less

31
Q

What are exemptions for gifts in consideration of marriage?

A

A. £5k by parents
B. £2.5k by GP
C. £1k by other

32
Q

Taper relief for lifetime transfers

A

0-3: full
3-4: 80%
4-5: 60%
5-6: 40%
6-7: 20%

33
Q

Requirements for common intention constructive trust?

A
  1. Common intention
  2. Relied on
  3. Contributed / detriment
34
Q

How many trustees to sell land?

A

Minimum 2

35
Q

How many trustees to sell land?

A

Minimum 2

36
Q

What assets pass to PRs without GOP?

A

1) payment to person appearing to be beneficially entitled as long as does not exceed £5k
A. Money in national savings bank
B. Premium bonds
C. Money in building society

2) chattels
3) cash

37
Q

Form for GOP (will)

A
  1. PA1P form and fee if estate over £5k, no fee if less
38
Q

Form for LOA? (Intestate)

A

PA1A

39
Q

Order of priority to apply for LOA with will annexed? / what is it?

A

Where will valid but no executor

  1. Bene with largest portion
40
Q

Order of priority to apply for LOA with will annexed? / what is it?

A

Where will valid but no executor

  1. Bene with largest portion
41
Q

Order of priority for LOA

A
  1. Spouse
  2. Children
  3. Parents
42
Q

What can beneficiaries do if issue with validity of will?

A
  1. Lodge caveat at Probate registry to stop grant being issued (lasts 6 months)
43
Q

How can benes compel issue of a grant?

A
  1. Citation - notice issued by district judge / probate reg
  2. S116 Senior Courts Act: Passing over or removal - court will apply in certain circumstances if executor cant be traced
44
Q

What is executors year?

A

Executor cant be made to distribute until 1 year from date of death

45
Q

What is s61 Trustee Act

A

T acted honestly and reasonable (defence to breach)

46
Q

How should T protect self when distributing estate?

A

Wait 6 months from grant to distribute

Insurance

Benjamin order

SQE 2 (MINE) (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions