KSL ATP Probate flashcards
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- Banks v Goodfellow test
- Test for testamentary capacity requiring testator to understand nature of will, extent of property, claims of dependants, and absence of disorder of mind.
- Statutory legacy
- Fixed sum payable to surviving spouse/civil partner on intestacy before residue distribution; amount updated by statutory instrument.
- Doctrine of lapse
- A gift to a beneficiary who predeceases the testator fails unless contrary intention; exceptions include issue of testator under s.33 Wills Act 1837.
- Ademption
- Specific gift fails if the property is no longer owned by the testator at death; beneficiary receives nothing for that gift.
- Armchair rule
- Court construes will by placing itself in testator's position at execution, considering surrounding circumstances to interpret words.
- Grant of probate
- Court document confirming executor's authority to administer estate under a valid will; conclusive evidence of will's validity.
- Letters of administration
- Grant issued when there is no executor or no will; appoints administrator to administer intestate estate.
- Caveat
- Notice warning registrar not to issue grant without notice; valid 6 months, renewable; used to challenge a will.
- Renunciation of probate
- Executor may renounce in writing before intermeddling; once renounced, cannot later apply for grant without court permission.
- Executor's year
- Period of one year from death during which PRs are not bound to distribute estate; creditors cannot sue until it expires.
- Devastavit
- Breach of duty by PR causing loss to estate through misapplication or retention of assets; personal liability.
- Assent
- Written transfer of estate property to beneficiary after administration; required for land under s.36 AEA 1925.
- Administration insolvency
- Rules governing payment of debts in insolvent estate: secured creditors, funeral/administration expenses, preferential debts, then unsecured.
- PA1P form
- Probate application form used to apply for grant of probate with a will; includes statement of truth.
- PA1A form
- Probate application form used to apply for letters of administration in intestacy cases.
- Statement of truth
- Verification of application contents; false statement may be contempt of court; required on probate forms.
- IHT421 receipt
- HMRC receipt confirming inheritance tax paid or exempt; required before grant of probate is issued.
- Probate fee
- Court fee for grant of probate; current fee £273 for estates over £5,000; additional copies £1.50 each.
- Trustee Act 2000 duty
- Statutory duty of care for trustees when exercising investment or management powers; requires reasonable care and skill.
- Power of advancement
- Trustee power under s.32 Trustee Act 1925 to pay capital to beneficiary before entitlement; limited to half share unless extended.
- Self-dealing rule
- Trustee cannot purchase trust property without court approval or consent; transaction voidable by beneficiaries.
- Section 61 relief
- Court may relieve trustee from liability for breach of trust if acted honestly and reasonably and ought fairly to be excused.
- Nil-rate band
- Inheritance tax threshold (£325,000 frozen until 2028); estate value below this pays no inheritance tax.
- Residence nil-rate band
- Additional IHT allowance up to £175,000 when main residence passes to direct descendants; tapered above £2m estate.
- Potentially exempt transfer
- Lifetime gift that becomes exempt if donor survives 7 years; otherwise taxed on death with taper relief.
- Family provision claim
- Application under Inheritance (Provision for Family and Dependants) Act 1975 for reasonable financial provision from estate.
- Capital gains tax on death
- No CGT on death; PRs acquire assets at probate value; subsequent disposals may attract CGT.
- Excepted estate
- Estate with gross value under £3m and no IHT due; simplified IHT205 form may be used instead of full account.
- Taper relief
- Reduction in IHT on failed PETs based on years survived: 20% per year from 3 to 7 years after gift.
- SRA Accounts Rules
- Rules requiring client money held in separate client account, accurate records, and no misuse of client funds.
- Confidentiality after death
- Duty of confidentiality continues after client's death; disclosure only with PR consent or court order.
- Undertaking
- Personal binding promise by solicitor; must be honoured; breach may lead to disciplinary action or civil liability.