Q&As
If personal representatives exercise their power of appropriation over the deceased’s land, what formalities must be fulfilled?
This Q&A assumes that the power of appropriation will be exercised by personal representatives and not trustees.
By way of background, the process of appropriation is where a personal representative (PR) or a trustee uses a specific asset in the estate or trust fund, to meet in full or in part, a beneficiary’s entitlement or interest.
What is appropriation?
PRs have a power of appropriation under the common law over any part of the residuary estate (but not a fund) which may be exercised with the consent of the beneficiary, in or towards satisfaction of a vested legacy or a share of residue. This power allows PRs to deal with both real and personal property even if that property is subject to a trust for conversion. See Practice Note: Personal representatives and trustees—power of appropriation.
The powers of appropriation given to PRs is set out in section 41 of the Administration of Estates Act 1925 (AEA 1925) and provides
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