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?

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Produced in partnership with Camilla Bishop of Keystone Law
Published on: 05 April 2022

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

Camilla Bishop
Camilla Bishop

Partner, Keystone Law

Camilla is an experienced lawyer who specialises in all aspects of estate planning with a particular focus on Inheritance Tax. As an expert in will drafting and the use of trusts along with trust administration, she provides practical tax-efficient solutions and deals with everything from everyday family needs to the very complex.
 
Camilla is experienced in estate administration and probate, advising on reliefs and exemptions (including Business Relief and Agricultural Relief) and post-death planning using deeds of variation.

Camilla’s expertise also extends to assisting elderly and vulnerable clients with lasting powers of attorney, deputyship applications and other Court of Protection matters.

Camilla is a full member of the Society of Trust & Estate Practitioners (STEP) and is on the committee of STEP Sussex. She regularly writes topical articles and gives webinars/seminars on estate planning to a wide audience of financial advisers and accountants and is well recognised for complementing the services they offer with a joined-up approach for mutual clients.

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Jurisdiction(s):
United Kingdom
Key definition:
Beneficiary definition
What does Beneficiary mean?

A person who has a interest'>beneficial interest in property under a trust.

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