Legal rights

[Bazman76]

https://assets.publishing.service.go...32006-2021.pdf

• I have a question regarding Q9 on the C5 form:
  • In this case the entire estate passes to the spouse and is under one million
  • There are children and grandchildren none of whom have been contacted about their legal rights
    • Moveable estate:
      • should the pension lump sum be included as an asset in the moveable estate, it was not included on the C1 on the basis that the trustees had discretion?
      • If the pension lump sum is not included then the moveable liabilities are larger than the moveable assets how should question 9 be answered?
        • N/A seems most likely on the basis that there is no legitim fund to distribute?
        • However if it is to be answered yes or No please give the rationale
        • For the correct answer, is it still necessary to notify potential claimants given that there is nothing to claim?
        • If so does this need to be done prior to applying for confirmation?
  • I have read the guidance notes shown above but am still confused

[sederunt]

Form C5 is only relevant to deaths prior to 1 Jan 2022 and only to excepted estates.

Question 9 of the C5 relates to the legitim fund which is the potential entitlement of children (or grandchildren etc) to a proportion of the net moveable estate.

A pension lump sum not being an asset in the moveable estate and not included on the C1 on the basis that the trustees had discretion, is often an accurate conclusion.

If the moveable liabilities are larger than the moveable assets then the legitim fund is zero.

NA seems the most logical option to tick and to answer a zero value into Q9.

If there is no legitim fund then there is no specific entitlement to notify claimants because there can be no claimants if there is no legitim fund. Whether you would want to advise informally is a personal decision.