Administration: Obtaining the Grant of Representation

Flashcards covering the legal principles and procedures for obtaining a grant of representation, valuation of estates, and inheritance tax (IHT) requirements as per SQE1 syllabus.

Personal Representatives (PRs)

A generic term covering both executors and intended administrators who wind up a deceased person's estate.

Grant of Representation

An official document issued by HMCTS confirming the PRs' authority to act and their title to the deceased's assets.

HMCTS Probate

His Majesty’s Courts and Tribunals Service Probate, the authority to which applications for grants are made.

Grant of Probate

A grant obtained using form PA1P when the deceased left a valid will appointing executors who are able and willing to act.

Grant of Letters of Administration with the will annexed

A grant obtained using form PA1P when the deceased left a valid will but no persons are able or willing to act as executors.

Grant of (simple) Letters of Administration

A grant obtained using form PA1A when the deceased left no valid will (total intestacy).

Executor's Authority

Derives from the will itself at the time of death, though the grant is needed as conclusive evidence of title for transactions like land sales.

Administrator's Authority

Stems solely from the grant, which is not retrospective to the date of death.

NCPR 1987, Rule 20

The rule determining the order of priority for those entitled to a grant of letters of administration with the will annexed.

NCPR 1987, Rule 22

The rule determining the order of priority for those entitled to a grant of simple letters of administration on intestacy.

Intermeddling

Performing tasks a personal representative might do, such as selling the deceased's chattels, which prevents an executor from later renouncing their right to the grant.

Administration of Estates (Small Payments) Act 1965

Allows certain institutions (e.g., National Savings) to release assets valued at $£5,000$ or less without a grant at their discretion.

Beneficial Joint Tenancy

A form of ownership where property passes by survivorship to the surviving joint tenant, making a grant irrelevant for that specific asset.

Excepted Estate

An estate that satisfies specific conditions (deaths on or after 1 January 2022) and does not require a full IHT400 account to be sent to HMRC.

Category 1 - 'small' estates

Excepted estates where the gross IHT value plus specified and exempt transfers in the 7 years prior to death does not exceed the nil rate threshold.

Category 2 - 'exempt' estates

Excepted estates where the gross value does not exceed $£3\text{ million}$ and the net chargeable estate after spouse or charity exemptions is within the nil rate band.

Specified Transfers

Chargeable transfers of cash, chattels, quoted shares, or land made within seven years before death, which must not exceed $£250,000$ for an estate to be excepted.

Specified Exempt Transfers

Transfers made within 7 years of death that are exempt under sections 18 (spouses), 23 (charities), 24 (political parties), 24A (housing associations), 27, or 28.

IHT400

The inheritance tax account form used for estates that are not excepted; it must be delivered within 12 months of the end of the month of death.

Instalment Option

The right to pay IHT on specific property (e.g., land and some business property) in 10 annual instalments; the first is due 6 months after the end of the month of death.

IHT423

The form used for the Direct Payment Scheme to arrange payment of IHT to HMRC directly from the deceased's bank or building society accounts.

Form PA15

The specific form used by an executor to formally renounce their right to take a grant of probate.

Power Reserved

A process where probate is granted to some executors while leaving the right for others (who do not wish to act initially) to take a grant in the future.

Probate Value

The value of property vesting in the PRs (passing under the grant), which excludes joint property, life policies in trust, and pension benefits.

Affidavit of Plight and Condition

Evidence required by HMCTS if the state of the will suggests it was interfered with, such as paperclip marks or signs of attempted revocation.

Number of PRs

The maximum number of PRs for a grant is four. Two administrators are generally required if there is a minority or life interest, whereas one executor is sufficient.

Cessate Grant

A grant of probate that an executor who was a minor at the time of the original grant may apply for once they reach 18 years of age.