IHTM38251 - Grants on credit: important Debt Management & Banking (DMB) action when dealing with limited grants

In all applications for a limited grant it is important to

• collect the correct amount of tax due from the applicants as soon as practicable
• regularly review for delivery of a full account ( IHTM10011) for the estate
• encourage the persons entitled to administer the estate to make application for a full grant
• identify any and all other persons that may be liable for tax on the deceased’s death
• take protective action wherever possible.

Protective action, e.g. a land charge ( IHTM38121), is necessary to ensure that the interests of the Exchequer are not prejudiced by any post death disputes arising in the administration. For example an application for Letters of Administration pendente lite would suggest costly post-death litigation that could significantly reduce the assets of the estate before a full grant issues. We need to ensure that all taxes are paid or secured before they are otherwise wasted in costs to the detriment of the Exchequer.

Finally, if the need for a limited grant of administration has been accepted by the Registrar/Court we should do all that we can to help the applicant(s) satisfy their statutory duty to complete an accurate account. To do otherwise may have serious consequences for the estate and the ultimate beneficiaries.