The rules applicable to the payment of the deceased’s debts and funeral and testamentary expenses depend on whether the estate is solvent or insolvent. Solvent estates A solvent estate is one where the assets are sufficient to pay the funeral, testamentary and administration expenses, debts and liabilities in full. It is irrelevant whether or not legacies can be paid in full in terms of deciding whether or not an estate is solvent. Where the estate contains sufficient

The statutory power of advancement in section 32 of the Trustee Act 1925, as amended by Inheritance and Trustees' Powers Act 2014, allows the trustees, if they wish, to bring forward (or, in other words, advance) all or any part of the beneficiary's prospective share of the capital. On a final distribution

Section 142(1)–(2A) of the Inheritance Tax Act 1984 (IHTA 1984) provides: ‘ …(1) Where within the period of two years after a person’s death— (a) any of the dispositions (whether effected by will, under the law relating to intestacy or otherwise) of the property comprised in his estate immediately before his death are varied, or (b) the benefit conferred by any of those dispositions is disclaimed, by an instrument in writing made by the persons or any of the persons who benefit or would benefit under the dispositions, this Act shall apply as if the variation had been effected by the deceased

We refer you to the following content to assist with your research: • Practice Notes: Will interpretation—principles of construction and Contents of Wills—beneficiaries who can take under a Will • Commentaries:

By section 19(2) of the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996), the beneficiaries of a trust may collectively give a written direction requiring the trustee(s) to retire and if they wish, also requiring the retiring trustee(s) to appoint the person(s) specified in the direction. TOLATA 1996,

This Q&A assumed that section 31 of the Trustee Act 1925 was excluded or amended in the trust instrument (the Will) so that B did not have an interest in possession prior to reaching age 21. First time buyers’ relief Section 57B and Sch 6ZA to the Finance Act 2003 (FA 2003) contain the eligibility criteria for first time buyers’ relief. Where the relief applies, the rates of stamp duty land tax (SDLT) are: • 0% on the first £300,000, and • 5% on the amount above £300,000 The conditions for the relief are: • there must be a purchase of a major interest (ie excluding leases with less than 21 years to run) in a single dwelling • the purchase price

We have assumed that the beneficiaries of the trust believe that the trustees’ remuneration, charged in accordance with the express charging clause in the trust instrument, is unreasonably excessive. Section 28 of the Trustee Act 2000 (TA 2000) applies to potentially widen an existing charging clause in a trust. If that charging clause gives a power to a trustee who is ‘acting in a professional capacity’ or is a trust corporation to receive payment out of trust funds in respect of services provided to, or on behalf of, the trust, such provision is extended by section 28 to services even if they are

In B2B contracts, termination rights are typically well-defined (eg allowing a party to terminate for convenience, for breach of contract or other specified events). Where a contract is silent as to a party’s right to terminate a contract, in the event of a dispute, the courts will apply common law principles. The ability of a party to terminate a contract in the absence of an explicit contractual right depends on several factors, including the nature of the contract. A

For the purpose of this Q&A, we have assumed that: • the property is a dwelling • the interest held by A and B is a freehold interest or a leasehold interest granted for a term of more than seven years • A occupies another dwelling as A’s only or main residence in which A has a freehold or leasehold interest • A and B are not civil partners of each other and/or are separated in circumstances in which the separation is

These duties of the personal representative are of a fiduciary nature. The personal representative must act in good faith and cannot put themselves in a position whereby there is a conflict of interest between their interests and those of the estate: Broughton v Broughton . The question raises a potential conflict of interest as the personal representative is also a beneficiary. Where a personal representative is faced with a conflict of interest and the Will does

It is understood that a will has left certain assets to be held on trust for B (sister) for life, with remainder to A (client). Where all the beneficiaries of a trust are of full age and mental capacity, they can together require the trust to be brought to an end and its assets to be transferred to them absolutely in such proportions as they agree: Saunders v Vautier. A simple deed will suffice. All beneficiaries affected would need to be parties. This takes effect subject to the trustee/executor’s right of indemnity and

Executors are under a duty to get in the estate of the deceased, recover debts owed to the estate, to pay its liabilities and then to distribute the estate in accordance with the terms of the Will. If there is any credible evidence at all that B has misused their power in such a way as to reduce the value of the estate, then the executor should investigate. This is partly because the executors should submit a return of the entire estate for tax purposes so that, if, for example, B has misappropriated assets of the estate, those assets