Q&As

A deceased died intestate, leaving a widow and two children. The assets of the estate far exceed £250,000, meaning that the assets would be held in trust for the children under the laws of intestacy. The deceased had shares which qualify for BPR. Is it possible for the administrators to apply the power of appropriation and gift the BPR shares to the children so as to reduce the value of other assets that will be subject to IHT?

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Published on LexisPSL on 05/02/2020

The following Wills & Probate Q&A provides comprehensive and up to date legal information covering:

  • A deceased died intestate, leaving a widow and two children. The assets of the estate far exceed £250,000, meaning that the assets would be held in trust for the children under the laws of intestacy. The deceased had shares which qualify for BPR. Is it possible for the administrators to apply the power of appropriation and gift the BPR shares to the children so as to reduce the value of other assets that will be subject to IHT?

See Practice Note: Entitlement on an intestacy, which explains that, where the deceased died after 30 September 2014 leaving a surviving spouse or civil partner and, in accordance with section 1 of the Inheritance and Trustees' Powers Act 2014 the net estate exceeds the amount of the fixed net sum (£250,000 as at 1 October 2014), the surviving spouse or civil partner is entitled to personal chattels and the fixed net sum free of inheritance tax and costs, with simple interest from date of death. Half of the remainder of the estate is held on trust absolutely for the surviving spouse/civil partner. The other half of the remainder is held on the statutory trusts for the deceased's issue.

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