Trusts and Inheritance Tax

Obtaining the grant of representation

Produced by Tolley
  • 22 Dec 2021 18:43

The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Obtaining the grant of representation
  • Requirement for a grant of representation
  • The application procedure
  • Identifying the assets and liabilities
  • Value the assets and liabilities to ascertain the IHT position
  • Completing the IHT forms
  • Apply for the grant of representation
  • The postal application procedure

Obtaining the grant of representation

The procedure by which access is gained to the deceased’s assets is often referred to as ‘obtaining probate’. An executor’s authority to deal with the deceased’s affairs (which derives from the Will) is evidenced by the grant of probate. Where there is no Will, the administrator derives their authority from the grant of letters of administration. The umbrella term for these grants is a ‘grant of representation’.

Requirement for a grant of representation

A grant of representation authorises the personal representatives (PRs) to administer the estate of the deceased person named on the grant. It provides evidence to third parties, such as banks and other asset holders, that those named on the grant now represent the deceased. In the majority of estates it will be necessary to apply for a grant in order to gain access to the deceased’s assets.

However, where an estate is particularly small financial institutions may transfer assets to the personal representatives without sight of a grant. Under the Administration of Estates (Small Payments) Act 1965 (as amended) the maximum amount transferable without a grant should not exceed £5,000. It is worth noting however that no asset holder is bound to pay any amount without seeing the grant. On the other hand, banks are known to release funds in excess of £5,000, although an indemnity will often be required.

A grant of representation will not be needed for assets which the deceased held jointly with another as joint tenants. Such property will pass to the

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information


Popular Articles

Missing trader intra-community fraud (MTIC)

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s

21 Dec 2021 16:45 | Produced by Tolley Read more Read more

QIPs ― when do they apply?

This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large

19 Oct 2021 23:01 | Produced by Tolley Read more Read more

Loan notes and qualifying corporate bonds (QCBs) and non-QCBs

On the disposal of the shares in a company, a seller may receive loan stock in the acquiring company as consideration or part consideration for the sale. For tax purposes, loan notes are either qualifying corporate bonds (QCBs) or non-QCBs (NQCBs). The expression ‘corporate bond’ is a general

21 Dec 2021 16:32 | Produced by Tolley Read more Read more