SQE2 Wills & Probate Practice 3

Question 1

Letters of administration are required (instead of probate) when:

Accepted Answer

The deceased died intestate or left a will but appointed no executor willing and able to act

Answer

Letters of administration are granted when there is no valid will appointing an executor, or no executor who can act; they vest the same authority in the administrator as probate does in an executor.

Question 2

The commorientes rule applies when:

Accepted Answer

Two people die in circumstances where it is uncertain who died first

Answer

The commorientes rule (s.184 Law of Property Act 1925) creates a statutory presumption that deaths occur in order of seniority (older first) when the order of deaths cannot be established.

Question 3

Which trust is most commonly used in estate planning to reduce IHT on life insurance proceeds?

Accepted Answer

A trust under which the policy is written in trust for named beneficiaries

Answer

Writing a life policy in trust means the proceeds do not form part of the deceased's estate for IHT and are paid directly to the named beneficiaries without waiting for probate.

Question 4

A solicitor who suspects a client lacked testamentary capacity when making a will should:

Accepted Answer

Apply the 'golden rule' and obtain a medical assessment before execution

Answer

The 'golden rule' in Kenward v Adams [1975] recommends that where capacity may be in doubt, a solicitor should have the testator assessed by a doctor who should both assess capacity and ideally witness the will.

Question 5

The residence nil-rate band (RNRB) for IHT purposes applies where:

Accepted Answer

A qualifying residential interest is passed to direct descendants (children or grandchildren)

Answer

The RNRB provides an additional IHT-free band when a qualifying residence is passed to a direct descendant (including adopted, foster or step-children and their descendants).

SQE2 Practice Test

SQE2 Practice Test

SQE2 Wills & Probate Practice 3