IN THE ESTATES OF NICKY AND LYDIA GRAY Case Study

IN THE ESTATES OF NICKY AND LYDIA GRAY - Case Study Example However a practitioner must advise the executors to publish an advertisement in the London Gazette and in the news paper having circulation in the district where the respective assets of the deceased are situate, for any liabilities owed by them. This is a requirement under section 27(1) of the Trustee Act 1925. As per what is known as Benjamin order 1, if it is not practicable to advertise, court should be approached for an order to distribute the estate assuming that all debts have been ascertained.2 As per s 34 and schedule 1 of Administration of Estates Act, it should be ensured that all debts are paid with due diligence, formal discharge or receipts for payments should be obtained and obtain a clearance certificate for tax liability on the estate of the deceased from the Capital Taxes office, and ensure that Department of Social Services does not have any claim on the estate,3 In addition any mortgage debt should be paid after payment of funeral expenses.4 Since it has been ment ioned that the Greenfield 'was left in trust for life ', it should be examined whether exemption from inheritance tax can be claimed under Trustees Act. The gift of violin to Beatrice will be exempted from Inheritance Tax if value is below 3,000, even though the deceased Nicky Gray had not survived for 7 years from the date of gift for availing exemption from the said tax. As the value of the Nicky Gray's property is said to be 500,000 as per the offer the executors in trust have received which is in excess of the 300,000, it is subject to Inheritance tax. The value of other assets also must be added to this value to compute inheritance tax which at present is 40% of the nil rate band of 300,000 for the year 2007-2008 and 350,000 thereafter upto April 2010. The executors may liable to pay the inheritance tax within six months of the testator's death and then only apply for Probate with evidence of having paid some or all of the tax due. The executors also should apply for probate in the probate court either in Principal Registry in London or in an applicable district probate court as the case may be and obtain a probate order from t he court. This is an authority conferred by the court on the executors to deal with the estate of the deceased in accordance with their Will. This will also help get access to Lydia Gray's bank account on being produced at the identified bank. Nicky Gray's Will Nicky's Green filed house is to be held in trust by Howard and Elaine Gray for life and then what ever is the remainder of the house will go to Alan Gray. Since Alan Gray is also one of the executors, he took the probate but is not taking any action. As Howard Gray and Elaine Gray who are ninety years old, they better appoint Administrators on their behalf to carry out the Will's administration. Subject to clarification regarding exemption from inheritance tax, it is only after the payment of inheritance tax, the court will issue grant with which the executors can deal with the property. The executors in order to pay the inheritance tax have to borrow money or meet from their own funds initially. They have to maintain an account for every beneficiary to see. They can distribute the balance amount of the estate after deducting the tax so paid and other expenses incurred and other liabilities paid if any. Under