The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
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’.
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 surviving joint owner by survivorship rather than being part of the deceased’s estate. Other assets may also not vest in the personal representatives, eg life policies that are subject to a trust set up by the deceased during his lifetime and lump sum death benefits paid at the discretion of the trustees of the deceased’s pension scheme.
There are many types of grant of representation but the most common are:
grant of probate ― where the
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
If an individual sells a chargeable asset and makes an allowable loss, how can this be relieved?First of all, since the simplification of capital gains tax from 6 April 2008, the proforma to calculate a loss is the same as the proforma to calculate a gain. See the Basic calculation principles of
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
Usually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note for further details.This rule can be
This guidance note provides an overview of the basic principles of inheritance tax, when it is charged and how it is calculated. It contains links and references to other parts of the module where more details can be found.Transfers of valueInheritance tax is based on the concept of a transfer of