This Q&A does not address the tax implications of the proposed appointment. The trustees of the settlement, like any beneficiary of the estate, have a chose in action from the date of death (the right to receive the property left to them unless it is required for the purposes of the administration). They can, therefore, make an appointment of their rights under the Will. If the terms of the settlement permit it, the trustees could simply resolve in writing to advance the chose in

Transfers of value made on death By section 4(1) of the Inheritance Tax Act 1984 (IHTA 1984), on a person's death inheritance tax (IHT) is chargeable as if immediately before their death they had made a transfer of value, and the value transferred by it had been equal to the value of their estate immediately before their death. Following IHTA 1984, s 38 the chargeable legacies will each need to be grossed up in order to find the gross legacy which, after deduction

In the circumstances described in the question, that is where the reference to a beneficiary is clearly wrong, an application to court for an order to rectify the Will may not be an appropriate course of action. The circumstances of the question appear to be a matter of construction rather than rectification. Where the identity of a beneficiary in a Will is unclear, the executors may be able to distribute the estate to the person who they believe to be the correct beneficiary, subject to obtaining a prior indemnity from that beneficiary. The executors may also take out indemnity insurance. Alternatively, the Will may give the executors the power to take action without the risk

The surviving partner may have an interest in possession (IIP) under a trust in the deceased’s share of the property. Alternatively, the right to reside may consist of a tenancy or contractual licence to occupy. The exact nature of the interest will depend on all the circumstances, in particular the terms of the Will. Interest in possession For a discussion of when a right of residence for life creates an IIP, see Q&As: • Does a right of residence for life create an interest in possession (IIP) trust? • Does a life interest in a will give a co-owner

The nature of the legacy to the non-residuary beneficiaries will depend on the construction of the Will. Legacies can be divided into three types: general, specific and demonstrative. A general legacy is a gift of non-specific property or money provided out of the testator's general estate that is not a defined or identifiable part of that estate. A demonstrative legacy is a pecuniary legacy payable out of a particular

The trustees specified in the Will (who may be the executors) may have been given sufficient power of advancement under section 32 of the Trustee Act 1925 in the Will, in which case, the trustees could make a settled advance in favour of the child, thereby deferring the age of entitlement. See Practice Note: Trustees—power of advancement. That would be preferable to making an application to court, as it would save time and avoid the costs of the application.

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