Administration Overview

Question 1

What are the pre-grant steps (general overview)?

Answer 1

1. Obtain official copy of the death certificate (usually a family member will provide this)
2. Arrange a funeral (usually a family member will do this)
3. Secure deceased’s property/notify insurers
4. Locate original Will/codicil
5. Establish succession estate and consider the basis of the distribution (intestacy/will/both if partial intestacy)
6. Identify/locate beneficiaries (consider whether a claim under the IPFDA is possible/likely?)
7. Prepare schedule of assets and liabilities
8. Prepare schedule of lifetime transfers
9. Collect assets that can be collected without a grant
10. Calculate IHT due and complete IHT form to account to HMRC (IHT 400)
11. Raise money to pay IHT
12. Complete probate application (Online/PA1P/PA1A)
13. Submit documentation to Probate Registry

Question 2

What post-grant steps are needed (in general)?

Answer 2

1. Notify HMRC about changes to IHT account using Form C4
2. Place s 27 Trustee Act 1925 notice
3. Collect assets
4. Pay debts and distribute to estate to beneficiaries
5. Prepare estate accounts and then have them signed by PRs and residuary beneficiary one complete
6. Make final distributions to residuary beneficiaries from client account

Question 3

What should be done in relation to locating the original Will/Codicil?

Answer 3

(i) Check date/confirm it is the ‘last Will’

(ii) any issues with validity?

(iii) might affidavit evidence be needed?

(iv) Consider effect s 9/15/18/18A/21/24/33 Wills Act 1837

(v) Has it been revoked

Question 4

What needs to be done in relation to preparing a schedule of assets and liabilities?

Answer 4

(i) arrange valuation of property/chattels/shares (date of death values)

(ii) notify banks/financial institutions/life insurance companies etc of death and request final statements

Question 5

What assets can be collected without a grant?

Answer 5

(i) assets that fall within the administration of estates act 1965

(ii) proceeds of life insurance policies written in trust

(iii) discretionary pensionary schemes

(iv) Statutory nominated property

(v) property held as joint tenants

(vi) donate mortis causa

Question 6

What needs to be done in relation to calculating the IHT due and completing IHT form to account to HMRC (IHT 400)?

Answer 6

(i) Submit IHT 400 to HMRC along with payment of any IHT due. HMRC sends a unique code and details of the estate values needed in order to submit the grant application to the Probate Registry

(ii) Submit PA form (containing the unique code and estate values) to the probate registry together with relevant fees

(iii) IHT form must be submitted within 12 months of death. However interest is due on unpaid IHT 6 months from end of month of death therefore this is effectively the deadline for paying IHT and submitting forms to HMRC

Question 7

What documentation needs to be submitted to probate registry?

Answer 7

(i) Application form - online/PA1P/PA1A

(ii) Original will/codicil

(iii) £ probate application fee

(iv) £ fee per sealed copy of the grant

(v) death certificate (although may not be required if professional is submitting application

May also be required:

(i) affidavit evidence
(ii) form of renunciation
(iii) confirmation notice of reservation of power was given
(iv) power of attorney