Wills and Administration of Estates

These flashcards cover key concepts related to wills and the administration of estates, including definitions, legal provisions, and estate distribution rules.

What is a testate individual in estate planning?

A testate individual is someone who dies leaving a valid will.

What occurs when an individual dies without a will?

The individual is termed intestate, and intestacy rules determine the distribution of their estate.

What is partial intestacy?

Partial intestacy occurs when a will does not cover the deceased's entire estate.

What are statutory trusts in relation to issue?

Issue (children and remoter descendants) are entitled to inherit the other half of the residue of the estate under statutory trusts.

What is the spouse's entitlement if they do not survive the deceased by 28 days?

If the spouse does not survive the deceased by 28 days, they cannot pass that interest to their own estate.

When is a will considered valid?

A will is valid when it meets the formal requirements of the Wills Act 1837, including testamentary capacity.

What must both witnesses do for a will to be valid?

Both witnesses must sign the will in the presence of the testator.

What is a codicil?

A codicil is an amendment to a will that can either add to or revoke part of the existing will.

Which gifts are classified as exempt from Inheritance Tax?

Annual exemptions, small gifts exemptions, and spouse exemptions are classified as exempt from Inheritance Tax.

What is Business Property Relief?

Business Property Relief provides relief from Inheritance Tax on qualifying business assets.

What evidence is required if a will is ambiguous?

Extrinsic evidence may be submitted to clarify the meaning of the will or its ambiguous parts.

What happens to a gift if the beneficiary predeceases the testator?

If a beneficiary dies before the testator, the gift to them fails, but s 33WA allows for substitutes in favor of their children.

What are the administrator's powers in the management of an estate?

Administrators have the authority to pay debts, manage assets, and distribute the estate according to the will or intestacy rules.

What must be done within 12 months after the grant of representation is issued?

The estate must be administered within 12 months following the grant of representation.

What is the significance of the IHT421 form concerning the grant application?

The grant application cannot proceed until the IHT421 form is submitted and all Inheritance Tax is paid.

What does the term 'lifetime gift' really mean for Inheritance Tax purposes?

A lifetime gift can be subject to Inheritance Tax if the donor dies within 7 years after making the gift.

Who has the right to challenge a will under the Inheritance Provision for Family and Dependants Act 1975?

Close relatives such as spouses, children, and cohabiting partners can challenge a will if it does not make reasonable financial provision for them.

What must be proven in a claim for financial provision under the IPFDA?

It must be shown that the deceased's will did not make reasonable financial provision for the applicant.