Q&As
A beneficiary of an estate is buying out the other beneficiaries’ entitlement so that they can keep an investment portfolio in the estate. Should the executors use the value as at the date of death to calculate what the beneficiary needs to pay to the others or should they re-value the estate as at the date of the transfer/buy-out?
It is not clear whether the beneficiary’s entitlement covers the value of the investment portfolio or if the investment portfolio exceeds the entitlement. In either case, the executors should consider the current value of the investment portfolio. If the current value is within the beneficiary’s entitlement, they are able to appropriate the portfolio to the beneficiary as part of their share of the estate.
The value of appropriation is the current value but, from a capital gains tax (CGT) perspective, the beneficiary’s base value will be the date of death value. The executors
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