Probate

Q&As

The testator, who was neither UK-resident nor UK-domiciled on death, established a trust under their Will with both UK-situs and foreign property. The trustees and beneficiaries are all resident in the UK. Does the foreign property constitute excluded property for inheritance tax purposes?

It is assumed that the testator died on or after 6 April 2017.Where property in a settlement is situated outside the UK, then that property is...

6th May

Q&As

Is it possible for the trustees of an offshore trust to claim business asset disposal relief on the sale of a UK company, if the beneficiary has a life interest in the trust and is UK resident and UK domiciled?

It is assumed that the life tenant of the trust is a qualifying beneficiary within the meaning of section 169J(3) of the Taxation of Chargeable Gains...

6th May

Q&As

Are unvested stock options included as taxable assets for IHT purposes on the death of the option holder? Does it make a difference if the option agreement provides that a portion of the options will lapse and become unexercisable in the event of death? Also, stock options are taxed as income when they are exercised. Is any tax discount applied to avoid a double charge where an option has been taxed for IHT at death, and then again for income tax when exercised?

This Q&A has assumed that 'vested' means that the option has become unconditionally capable of exercise.This is a complex area of law. Broadly, the...

6th May

Q&As

If 50% of the residue of an individual's estate is left to a married couple but the husband has died and there is no clause as to what should happen in this scenario, what happens to the 50% share? Does it fail entirely, does all 50% go to the wife, or does she receive a 25% share and the remaining 25% share fails?

The key factor in determining how the gift in residue will devolve following the death of the husband is the nature of the gift given to the spouses:...

6th May

Practice notes

Missing beneficiaries and intestacy with no surviving relatives

Where an individual dies leaving no known relatives and a probate practitioner is involved, the first step will be to ascertain whether the deceased...

6th May

Q&As

Is there any basis upon which a retired professional can claim under a charging provision in a Will?

To some extent the answer to this Q&A will depend on the remuneration clause in the Will, and the circumstances of the case. The general rule remains...

Produced in partnership with Paul Davies of Clarke Willmott 5th May

Practice notes

Partial intestacy

DefinitionPartial intestacy may arise when a testator has made an effective testamentary disposition of part of their estate but has failed to dispose...

5th May

Practice notes

Introductory guide to IHT

FORTHCOMING CHANGE: Following the Inheritance Tax Review Call for evidence and Survey, which ran from 27 April and 8 June 2018, the Office of Tax...

5th May

Practice notes

IHT—deduction of liabilities

FORTHCOMING CHANGE: As announced at Budget 2018, draft legislation to be included in Finance Bill 2019–20 was published on 11 July 2019 and includes a...

4th May

Practice notes

Power of appropriation

Appropriation is a process by which a personal representative or a trustee uses a specific asset in the estate or trust fund, to meet in full or in...

4th May

Practice notes

Transition from personal representative to trustee

Trusts created on deathTrusts may be created during the lifetime of the settlor or on an individual’s death. This Practice Note considers trusts...

4th May

Practice notes

Estate administration—interests in trusts and other estates

In administering the assets of an estate, there are some assets and liabilities that can be easily overlooked. As well as checking what assets and...

4th May

Practice notes

Total intestacy

The intestacy rulesA total intestacy occurs when all of the deceased's property is undisposed of because:•the deceased did not make a Will•the...

4th May

Practice notes

Obtaining the Will

Is there a Will?The first step will be to search the deceased’s house and papers for either the Will, a copy or correspondence referring to the...

30th Apr

Practice notes

Executor's and administrator's authority prior to the grant

ExecutorsGeneralAn executor is a person appointed by the testator, usually by their Will or codicil, to:•administer their property, and•carry into...

30th Apr

Q&As

If personal chattels are left in a Will to trustees to distribute in accordance with a written memorandum, how should the items be distributed of no memorandum is found following the testator's death?

There are a number of different forms for such a trust of chattels.Frequently, such a clause will include words which leave the chattels to the...

30th Apr

Practice notes

IHT—valuation principles and particular types of property

The need to value the estateWhen an individual dies they are considered to have made a 'transfer of value' equal to the value of their estate...

Produced in partnership with Ailsa Moorhouse of Penningtons Manches Cooper 28th Apr

Q&As

A deceased's Will created a life interest in their share of a property for their partner, with remainder going to the deceased's child. The property has been sold within two years of death and the life tenant and remainderman have agreed to a split of the proceeds. Would a variation of the Will or a termination (partition) of the trust be the best option, bearing in mind the tax consequences?

This Q&A assumes that the child in question is an adult and also, for inheritance tax (IHT) purposes, that the life tenant holds a qualifying interest...

Produced in partnership with Lynne Counsell of 9 Stone Buildings 27th Apr

Q&As

Where a property that is owned by trustees under a Will trust is occupied by a beneficiary and another occupier under a licence, but on the termination of the licence, the occupier refuses to vacate the property, how are the trustees able to evict the occupier and does the occupier have a beneficial interest in the property?

This Q&A considers how trustees, as owners of a property under a Will trust, are able to evict an occupier of the property upon termination of a...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 27th Apr

Q&As

The deceased's Will includes a nil rate band discretionary trust and authorises trustees to permit the deferral of the payment to the trust to be interest-free and to secure its payment by taking a charge over any property. Could the trustees accept an IOU from the surviving spouse to fund the legacy? Alternatively, could the trustees take a charge over the surviving spouse's financial assets? More than two years have passed since the death of the deceased.

A legacy to a nil rate band (NRB) discretionary trust is usually funded in the following ways:•cash, property or assets owned by the testator are...

27th Apr

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