Wills LPC Questions and Answers

Wills LPC Questions and Answers Requirements for a valid will necessary mental capacity, intention and formalities Formalities for creation of a will (s.9 WA) signed by transferor, transferor signed to give effect to the will, witnessed by two people 0:49 / 1:27 5 Sanity-Saving Tips for Arguing on the Internet 3 ways to revoke a will Valid will made at later date, marriage, destruction with intention to destroy 5 ways in which a gift may fail ademption, lapse, divorce, beneficiary or their spouse witnesses the will, disclaimer or forfeiture when can you not disclaim a gift? if you have already benefitted from it what is abatement where the estate is solvent but there isn't enough money to pay all the legacies what is the succession estate? the estate which passes under the will when will property pass automatically (5 examples) beneficial joint tenants, insurance written for benefit of another, trust property, nominated person in bank account, death in service benefits how can you challenge a will based on lack of intention? must prove force or undue influence or fraud or mistake (absence of knowledge or lack of approval) what is the banks v goodfellow test for necessary mental capacity nature and effect of actions, extent of property, moral understanding how can you validly alter a will? via a codicil when can you get extra NRB? if you are a surviving spouse, can use dead spouse's NRB what is the annual exemption and to what does it apply? for lifetime transfers, the first 3k of each transfer are tax free, you can use previous year's exemption too. what are the rates of tax for IHT on the death estate 0% for NRB, 40% thereafter, 36% is more than 10% of your estate is going to charity what are the rates of tapering relief and what do they reduce tapering relief reduces the rate of tax payable on lifetime transfers, 3-4 years = 80%, 4-5 = 60%, 5-6 = 40%, 6-7 = 20% what is the IHT 400 and when does it need to be completed? it is an inventory of assets and liabilities signed by the PRs, must be completed within 12 months from the end of the death month, and before a grant of probate or administration is issued when do you not have to complete IHT 400 (3 examples) 1. small expected estate (gross value of estate is less than 325k or 650k if totally unused spouse NRB 2. exempt estate (gross value less than 1m and majority going to spouse or charity) 3. non- domiciled estate (uk estate less than 150k) when must IHT be paid (non- instalment) within 6m from the end of the month of death when can you use instalment option for paying IHT land, business or an interest in one, unquoted which amount to at least 10% of more than 20k, or HMRC satisfied tax can't be paid in lump without undue hardship name 6 ways of funding IHT direct payment scheme, life assurance if written for benefit of the estate, small payments, beneficiary loans money, borrow from bank, offer a heritage asset in lieu how do you apportion IHT? total tax bill, divided by total chargeable estate, multiplied by asset value how can property pass outside of the will or intestacy (5 ways) joint tenants, trust property, insurance written for someone else, death in service benefits, nominated person how many PRs are needed and what is the maximum amount? Max 4, normally only need 1 PR but for administration will need 2 if a trust or minority interest is being created how do you protect from missing unknown beneficiaries? advertise for a minimum of two months in the london gazette, local newspaper and any other vehicle appropriate in the circumstances, making clear that the time limit for applications is 2 months. how do you protect from a missing but known beneficiary (4 ways) apply for a benjamin order where the B is considered dead and has the right to recover from other Bs but not PRs, take out insurance, keep assets back or take out indemnity from other Bs what can PRs do without a grant? assets worth less than 5k can pass before grant issued, cash can be dealt with what affadavit do you need if no attestation clause? due execution what affadavit do you need if transferor is blind or illiterate? knowledge and approval what affadavit do you require if will suggests interference? plight and condition what happens if a PR dies after grant before administering the estate? if other PRs, don't worry, if they appoint executor in their will, they step in to act what is a caveat prevents the grant of representation, for example where there is doubt over mental capacity or validity of the will what is a citation where executor can't be removed due to intermeddling, but shows no signs of applying for grant, can be used to clear off too what is the one condition for a surviving spouse under intestacy laws? they must survive 28 days what is the order in which people get paid out under intestacy laws spouse, children, parents, siblings (WB then HB), grandparents, uncles and aunts (WB then HB), the crown who can claim under IPFDA75? spouse, former spouse who hasn't remarried, child, someone brought up by deceased, anyone being maintained by deceased at the time of their death, anyone who in the 2 years leading up to the death was living in household as a spouse or partner of the deceased what must you prove under IPFDA75 and when must you make the application by? that deceased did not make reasonable financial provision for you, reasonable for your maintenance. Application must come within 6 months from the date of the grant for how long do PRs hold the office? fo they entire bomboclart existence what are the 5 steps of administering an estate? 1. consider available powers 2. collect deceased's assets 3. pay the funeral and administration expenses and debts 4. distribute the legacies 5. complete admin and transfer residuary estate can PRs charge for their work? no, not unless they are professionals, can recover expenses though obviously Children contingent on 18 or marriage. If they predecease, their living children take. - Per Stirpes. If Post-decease with no vested interest but have a child, child takes. I(FDA)A 1975 - Court Considers a) financial resources and needs of the applicant in the foreseeable future; b) Deceased's moral obligations; c) Size and nature of the estate; (d) Physical or mental disability of any applicant or beneficiary; (e) Anything else which may be relevant e.g. conduct.