PSP 3 - Inheritance

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Questions and Answers

What is one primary benefit of having a valid will in terms of asset distribution?

It allows beneficiaries to determine asset distribution.

It prevents capital gains tax on the estate.

It eliminates the need for executors.

It enables the testator to choose beneficiaries. (correct)

In the context of estate administration, what role can a will play regarding executors?

It permits the executor to commence proceedings before probate. (correct)

It allows executors to decide the beneficiaries.

It eliminates the executor's need to be legally appointed.

It restricts executors from charging a fee.

How does a will impact probate costs compared to dying without one?

It allows the state to cover all probate expenses.

It generally leads to faster and lower-cost probate. (correct)

It typically results in higher probate costs.

It ensures all probate fees are waived.

What can be specified regarding executors in a valid will?

Their remuneration can be fixed and specified. Signup and view all the answers

What assurance does a will provide concerning minors?

It allows the appointment of guardians for infant children. Signup and view all the answers

Which of the following statements about intestate succession is correct?

It may lead to undeserving individuals inheriting from the estate. Signup and view all the answers

What advantage does a valid will have concerning stamp duty?

It allows for potential savings on stamp duty. Signup and view all the answers

What is one of the primary advantages of having a will related to the executor?

The testator can choose a professional or trust company as executor. Signup and view all the answers

Which section of the Insolvency, Restructuring and Dissolution Act disqualifies a bankrupt from acting as an executor?

Section 1 Signup and view all the answers

Why is it recommended to appoint a substitute executor?

In case the primary executor is unwilling or unable to serve. Signup and view all the answers

What happens if there is no willing or able executor for a valid will?

The estate will be governed under Section 13 of the PAA. Signup and view all the answers

What does the Law Society's professional indemnity and tools scheme cover?

Claims against solicitors acting as executors. Signup and view all the answers

What must a bankrupt do to act as a personal representative?

Receive approval from the official assignee. Signup and view all the answers

What is one reason a testator may ignore appointing a substitute executor?

They have complete confidence in a single executor. Signup and view all the answers

What is the result if an appointed executor dies before the testator?

A substitute executor may be granted the role. Signup and view all the answers

What is a key factor in advising on the appointment of an executor?

Choose an individual who is likely to accept the role. Signup and view all the answers

What is the requirement for appointing administrators when a deceased person leaves behind children under the age of 21?

Two administrators must be appointed. Signup and view all the answers

What advantage does a will provide concerning the appointment of executors for a person with children under 21?

Only one executor can be appointed without additional difficulties. Signup and view all the answers

What is a significant burden when administering the estate of a deceased person without a will?

Finding a co-administrator can be difficult. Signup and view all the answers

Which of the following statements about the role of executors compared to administrators is correct?

Executors are not required to act out of duty. Signup and view all the answers

What financial implications could arise from filing documentations for estate management without a will?

Costs may accumulate if securities are needed for the administration bond. Signup and view all the answers

If a deceased individual leaves a will appointing executors, what is a key advantage regarding the estate's handling?

Executors can manage the estate before producing probate. Signup and view all the answers

What must be obtained for the dispensation of securities required for an administration bond?

A court order. Signup and view all the answers

What is a notable inconvenience faced by the spouse of a deceased person when no will is present?

They often struggle to find a co-administrator. Signup and view all the answers

In the absence of a will, how do the responsibilities of administrators differ from executors?

Administrators must fulfill legal obligations. Signup and view all the answers

What can a testator stipulate regarding family wealth in a will?

The preservation of family wealth for a certain period Signup and view all the answers

What happens to the beneficiaries if a person dies in state?

They are entitled to their full entitlement under the ISA Signup and view all the answers

In what situation can executors commence legal proceedings before the grant of probate is issued?

If they have applied for the grant at that time Signup and view all the answers

How is the remuneration of an executor determined if not expressly stated in a will?

It is determined by Section 66 of the PAA Signup and view all the answers

What is a potential reason why individuals avoid creating a will despite its advantages?

Belief that their assets are too insignificant Signup and view all the answers

Under what condition can executors begin acting on property related to the estate of a deceased person?

After the grant of property has been obtained Signup and view all the answers

What happens to the interstate property upon the death of a person?

It enters a state of limbo until letters of administration are obtained Signup and view all the answers

What type of guardian can a testator appoint for their infant children?

One or more guardians as stated in their will Signup and view all the answers

What is the role of a guardian appointed under a will in relation to the surviving parent?

They can only act if the surviving parent agrees Signup and view all the answers

If a person dies leaving minor children, who automatically becomes the sole guardian if the other parent is alive?

The surviving parent Signup and view all the answers

What must an executor provide when applying for a grant of probate, assuming a valid will exists?

Typically, no additional information is needed Signup and view all the answers

What might a court request when a will is executed under special circumstances?

An affidavit of foreign law Signup and view all the answers

What happens if both parents die without appointing guardians for their child?

Disputes may arise between next of kin regarding guardianship Signup and view all the answers

When can the court intervene regarding a guardian appointed in a will?

If there is a dispute with the surviving parent Signup and view all the answers

What is a significant feature of a valid will in relation to the executor's responsibilities?

It speaks for itself and alleviates the need for further proof Signup and view all the answers

Study Notes

Takeaways

A valid will allows the testator to choose beneficiaries and determine the distribution of assets.
Executors and trustees can be appointed in a will, providing flexibility and control over the estate administration.
A valid will enables faster and less costly probate compared to dying intestate.
Wills allow for the appointment of guardians for infant children, ensuring their well-being and care.
Wills preserve and properly distribute family wealth, preventing squandering.
Savings on stamp duty can be achieved through a valid will.
Executors can commence legal proceedings even before probate is issued.
Will allows executors' remuneration to be set and fixed, providing clarity and control.

Advantages of Having a Valid Will

The testator chooses their beneficiaries.
The testator has control over how the estate is distributed.
Wills enable faster and less costly probate compared to intestacy.
Guardianship of minor children can be specified in wills.
Wills prevent the squandering of family wealth.
Wills reduce stamp duty.
Executors can act before probate is issued.
Wills allow the remuneration of executors to be set.

Additional Information on Wills

14 advantages of hearing about wills were discussed in the lecture.
Rules about Muslims and inheritances are different from other legal systems.
Testators can appoint guardians for minors.
Executors can be chosen and will have to be trustworthy and are able to carry out their duties.
Specific instructions and rules for appointing executors in a will will need to be followed in legal proceedings.

Other Considerations

Executors and trustees can be appointed.
Solicitors can be chosen and appointed as executors for a fee.
If an executor is bankrupt, the court may approve their appointment.
A will enables the testator to impose specific conditions on inheritances.
There are processes for appointing substitutes if executors refuse or die before the inheritance can be distributed.
The legal provisions for inheritance or wills can be different from case to case.
Wills are made on behalf of the deceased for the benefit of their dependents.
There are specific timeframes for applying for probate.
If specific conditions are not met for probate, different procedures can be applied.

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Description

This quiz explores the importance of having a valid will and its benefits in estate planning. It covers key aspects such as choosing beneficiaries, appointing guardians, and the advantages of a quicker probate process. Test your knowledge on how a well-structured will can enhance control over asset distribution.