Probate & Administration

Question 1

grant of representation

Answer 1

A legal document giving personal representatives authority to administer the estate and prove title to assets.

Question 2

Why is a grant of representation needed?

Answer 2

To access, transfer, and deal with the deceased’s assets and provide proof of authority.

Question 3

When is a grant NOT required?

Answer 3

Jointly owned assets passing by survivorship
Nominated assets (e.g. pensions, life insurance)
Small estates (≈ under £5,000)
Personal chattels and small cash sums

Question 4

grant of probate

Answer 4

A grant issued where there is a valid will and executors willing and able to act.

Question 5

letters of administration

Answer 5

A grant issued where there is no valid will or no executor able/willing to act.

Question 6

key difference between executors and administrators

Answer 6

Executors derive authority from the will; administrators derive authority from the grant.

Question 7

Non-Contentious Probate Rules 1987

Answer 7

Who can apply for a grant and the procedure for obtaining it.

Question 8

priority to apply for a grant (intestacy)

Answer 8

Spouse/civil partner
Children
Parents
Siblings
Wider relatives

Question 9

key principle behind priority rules

Answer 9

Those with the greatest beneficial interest have priority.

Question 10

limited grants

Answer 10

Special grants for specific situations (e.g. urgent collection of assets or incomplete administration).

Question 11

first step in applying for a grant

Answer 11

Register the death and obtain a death certificate.

Question 12

what must be done before applying for probate regarding tax

Answer 12

Determine and report Inheritance Tax (IHT).

Question 13

forms used for probate applications

Answer 13

PA1P (with will)
PA1A (intestacy)

Question 14

application submitted

Answer 14

The Probate Registry.

Question 15

what replaces the oath in modern probate applications

Answer 15

Statement of truth.

Question 16

what must PRs do regarding estate valuation

Answer 16

Identify and value all assets and liabilities at date of death.

Question 17

why is valuation important

Answer 17

Determines IHT liability
Required for probate application
Avoids personal liability

Question 18

examples of estate assets

Answer 18

Property, bank accounts, shares, business interests, personal possessions.

Question 19

examples of liabilities

Answer 19

Loans, mortgages, credit cards, funeral expenses, taxes.

Question 20

excepted estate

Answer 20

An estate that does not require a full IHT account.

Question 21

when is an estate usually excepted

Answer 21

Below nil-rate band
Passing to spouse or charity
Funding Initial IHT

Question 22

why is funding IHT an issue

Answer 22

IHT is usually payable before the grant is issued.

Question 23

how can initial IHT be funded

Answer 23

Direct payment from bank accounts
Loans
Instalments from HMRC
Insurance proceeds

Question 24

burden of IHT

Answer 24

Who ultimately bears the tax.

Question 25

incidence of IHT

Answer 25

Which part of the estate pays the tax.

Question 26

default rule

Answer 26

IHT is paid from the residuary estate.

Question 27

main duties of PRs

Answer 27

Collect assets Preserve estate Pay debts and taxes Distribute estate Prepare accounts

Question 28

statutory duty applies to PRs

Answer 28

Duty of care under the Trustee Act 2000.

Question 29

when can PRs be personally liable

Answer 29

Breach of duty Incorrect distribution Failure to pay creditors

Question 30

protection does s61 Trustee Act 1925 provide

Answer 30

Court may relieve PR if they acted honestly and reasonably.

Question 31

how do PRs protect against unknown beneficiaries

Answer 31

s27 Trustee Act 1925 advertisements.

Question 32

effect of s27 advertisements

Answer 32

After 2 months, PRs can distribute without liability to unknown claimants.

Question 33

how can PRs deal with missing beneficiaries

Answer 33

Benjamin order Insurance Indemnities Reserve funds

Question 34

why may PRs sell estate assets

Answer 34

To pay funeral expenses, taxes, debts, and legacies.

Question 35

duty applies when selling assets

Answer 35

To act in the best interests of beneficiaries and obtain the best price.

Question 36

when can PRs distribute the estate

Answer 36

After paying all debts, taxes, and expenses.

Question 37

how is a testate estate distributed

Answer 37

According to the will.

Question 38

how is an intestate estate distributed

Answer 38

According to statutory intestacy rules.

Question 39

order of payment in insolvent estates

Answer 39

Secured creditors Funeral/admin expenses Preferential debts Unsecured creditors Interest Deferred debts

Question 40

disclaimer

Answer 40

Refusal of a gift, treated as if beneficiary predeceased.

Question 41

deed of variation

Answer 41

Rearrangement of estate distribution, potentially tax-efficient.

Question 42

time limit for claims

Answer 42

6 months from the grant of representation.

Question 43

can the court extend the time limit

Answer 43

Yes, at its discretion.

Question 44

who can apply under the Act

Answer 44

Spouse/civil partner Former spouse (not remarried) Children Step-children Dependants Cohabitants (2 years)

Question 45

what must the applicant prove

Answer 45

That the estate does not provide reasonable financial provision.

Question 46

spouse standard

Answer 46

Provision reasonable in all circumstances (not limited to maintenance).

Question 47

standard for other applicants

Answer 47

Provision required for maintenance only.

Question 48

factors does the court consider

Answer 48

Financial needs/resources Size of estate Obligations of deceased Disabilities Conduct

Question 49

orders can the court make

Answer 49

Lump sum Periodical payments Property transfer

Question 50

how are orders treated for IHT

Answer 50

As if made by the deceased (tax neutral).