People Insights
Contact Us
Get in touch
Contact Us
Published On: October 27, 2022 | Blog | 0 comments

There is a caveat in place but steps need to be taken to preserve the assets – what can we do?

If there is a caveat lodged against an estate, the executors or administrators of the estate cannot obtain the grant of probate or letters of administration. In practice this means that any attempt to begin administering the estate must come to a standstill, whilst lengthy litigation is ongoing. This can impact estate’s value, particularly where properties are involved. For instance:

  • Properties might fall into disrepair.
  • Sales might be lost or delayed.
  • Bills may not be paid, and penalties might accrue. This might even lead to the property being forfeited,
  • Mortgage arrears might lead to repossession.

What can be done?

Limited Grant – Grant ad Colligenda Bona

An application can be made for a type of limited grant, called a grant ad colligenda bona. The purpose of this grant is to allow the administrators to collect and realise assets in order to preserve the value of the estate and pay liabilities.

This grant type is of course limited to a particular purpose. It does not allow for distribution of the estate. To distribute assets, a full grant of probate will need to be obtained once the dispute is resolved. However, it will allow for monies to be gathered in and bills to be paid.

For such a grant to be issues, an application form will need to be lodged along with a statement or affidavit that sets out the case background and why the grant is needed. Whilst in some cases it is possible to proceed without payment of any IHT or the IHT205 (if the estate does not pay inheritance tax) or the IHT400 (if there is inheritance tax to be paid by the estate) forms being lodged.

If the grant ad colligenda bona has been granted, the executor or administrator must be sure not to stray from what is permitted by the grant, as they may be held personally liable for any loss to the estate as a result.

David Wedgwood and Kimberley McGhie will touch on this issue in more detail at our in-person seminar for professionals on 24th November 2022.

* Disclaimer: The information on the Anthony Gold website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied.*

Get in touch

Call, email or use a contact form – whichever suits you. We’ll let you know the best person to help you get started.

Call or Email

020 7940 4060

No comments

Add your comment

We need your name and email address to make sure you’re a real person. We won’t share your email address with anyone else or send you spam. Please complete fields marked with *.

Leave a Reply

Your email address and phone number will not be published on the website. Other visitors will not be able to see your contact information. Required fields are marked *

Contact Us

How can we help?

Request a Call Back

How can we help?