Summary
Summary Distinction Level Private Client 1) Administration 2) Intestacy and Inheritance Tax 3) Lasting Powers of Attorney
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Key summary of all content for the BPP Private Client elective exam.
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ADMINISTRATION- PRE-GRANT STEPS - if no, consider extra evidence which may beneeded
WAIT 6 MONTHS BEFORE DISTRIBUTION d) has the will been interfered w/?
IN CASE CLAIMS UNDER IHT()A Signs of tearing, alterations, obligations or signs
1) Receive Instructions and Identify Client that some other doc has been attached
PR’s- generic term covering either the executors - if yes, affidavit evidence will have to be
named in will, or administrators appointed under submitted to the probate registry
one of Rule 20 or Rule 22 Non-contentious
Probate Rules 87 5) Funeral Arrangements
Not all PR’s appoint S but if they do, it is the PR Express wishes for funeral
and not the b’s who are the client Medical use of body
Acting on behalf of PR is different to where If no relatives, may need to organise funeral
partner is appointed directly as PR
PR doesn’t wish to act? 6) Secure the deceased’s property (if necessary)
1. Act If property is vacant notify insurers immediately
2. Reserve Power- less final option and comply w/ all their requirements to ensure
3. Renounce- completely give up right to act as an full cover is maintained
executor If necessary, collect valuable assets and docs for
4. Appoint an attorney safekeeping
5. Instruct solicitor
7) Draw up schedule of assets and liabilities
2) Obtain death cert After taken full instructions from client:
Normally clients will provide this o Write to all asset holders to obtain valuations
Where no relatives or friends, you may have to and register the death
register the death o Obtain appropriate withdrawal/ closure forms
for use post grant
3) Locate the Will o Obtain full details on any debts of the
Where testate, obtain OG will deceased
o Copy will not suffice unless specific o Draw up a schedule of the value of all the
permission from PROB REG assets and debts in the estate of the deceased
No will, preliminary enquiries should be made to valued AT DATE OF DEATH
confirm that the deceased died intestate
8) Establish Identities of Bens
4) Check the Will Under terms of will or intestacy rules and obtain
a) Is this the last will of T? up to date address
Examine the date If possibility of unknown B’s, protect PR’s under
Make enquiries of relatives etc to make sure no s27 TA
later wills Where location unknown, take necessary steps to
b) ensure that this will has not been revoked trace them
Can be revoked in a number of ways:
- express 9) Identify and Collect in any assets that do not
- implied require the production of GoR
- subsequent marriage/ civil partnership a) Orders under AoE (Small Payments Act 1995
- destruction Upper financial limit of £5k per asset
- effect of divorce/ dissolution of civil o If a holding exceeds this limit, no payment
partnership can be made under the Act and a grant will
- check that the current will DOES REVOKE be necessary to establish title to the whole
any earlier will sum, not just that in excess of limit
c) was the will executed in accordance w/ S9 Only makes payments permissible, does not
In writing and signed by T? compel those holding the assets to do so
Are there 2 witnesses? b) Proceeds of life policies written in trust
Does it contain a satisfactory attestation clause? If written in trust, its proceeds do not pass into
- if yes, a presumption of due execution arises the estate
Payments made by trustees of such a scheme to c) Discretionary Pension Scheme Payments
, the ‘nominees’ will not form part of the ii) did the deceased make an LCT or CROB or
deceased’s death estate benefit from an alternatively secured pension
d) Stat nominations during their lifetime?
Where a person is entitled to certain types of NO
property, he/ she can make a stat nom in favour iii) Does the estate contain foreign property
of a 3rd party who he wishes to received the worth >£100k
property after his/ her death iv) does the estate contain an interest in more
e) Jointly owned property as BJT than one trust? Or an interest in a single trust
Pass to surviving tenant by virtue of survivorship worth >150k
Survivor merely needs proof of death on any NO
subsequent disposal v) did the deceased pay premiums on life insurance
App to LR to remove name of deceased from policies not for their own benefit/ did not pay out to
title their estate and did they by an Annuity?
f) Donatio Mortis Causa NO
Property passing under a valid DMC passes vi) in the 7 years before death is the total value of
directly to the done on death non-exempt gifts that the deceased made >150k?
Summary of Assets that can be collected w/out NO
production of GoR vii) is the gross value of the estate less than NRB?
a. Assets coming w/in the AOD(SP)A 65 If answer to any of the above is YES then not an
b. Proceeds of life policies written in trust excepted estate
c. DPS
d. SN 11) Grant of Representation
e. Prop JT Why Necessary?
f. DMC Establishes the authority of the PR’s, in
particular in relation to their right to collect the
10) Identify and Prepare Correct IHT Account assets and distribute the estate
Excepted estate Establishes the validity of the deceased’s will
IHT 205 (grant of probate and letters of admin with will
If not IHT to pay, may be excepted annexed)
If IHT is due on the estate then it will NEVER be Alternatively, stablishes that died intestate (grant
excepted of letters of admin)
Where a person dies
- on or after 6 April 04 Types
- domiciled in UK a. Grant of probate
… Their estate may be excepted because: b. Grant of letters of admin w/ will annexed
a. The gross value of the estate is below the - use PA1P
IHT threshold (a LOW VALUE c. Grant of letters of admin
EXCEPTED ESTAT) - use PA1A
b. Gross value is £1m or less and there s no tax Forms are used where a paper app made by a
to pay because, after deduction of spouse/ legal rep
civil partner or charity exemption, it does not Apps can also be made online by normal people
exceed the IHT freehold (an exempt
excepted estate) a) Grant of Probate
NRB If the deceased left a valid will which appointed
Can only use double NRB where there is one executors and they are able and willing to act
former spouse/ civil partner, who did not use it Appropriate even if will did not dispose of all the
If apply April- August have to use the previous deceased’s property
years NRB o Expressly appointed
o Impliedly appointed (according to the tenor
i) is any IHT due on death? of will)
NO Entitlement to the grant
If appointed by will, provided not minor or suffering
mental disability and unable to manage own affairs,
Capacity to act will be only people entitled to take out grant
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