This Q&A considers the factual situation where the deceased resided and died outside the UK and the executor has obtained a Grant of Probate in the deceased’s resident country. The deceased does not have any assets in England and Wales, other than the executor claims that the deceased’s estate is owed a portion of the proceeds of sale of a property. The issue is whether, in these circumstances, the executor needs to obtain a Grant of probate in England and Wales in order to issue a claim on behalf of the estate in this jurisdiction. Foreign

The transfer of a half share of the property to the brother of the deceased was a potentially exempt transfer. Since the deceased has survived the transfer by more than seven years, the transfer falls out of account for the purpose of calculating the inheritance tax (IHT) chargeable as a result of the death of the deceased. The gift of an interest in a house, in which the deceased lived until their death, would potentially fall foul of the rules against gifts with reservation. However, the situation described would appear to fall squarely within the exemption provided by section 102B(4) of the Finance Act 1986. The deceased made

There are no special arrangements between the UK and the Isle of Man regarding cross-border estates. The personal representatives of the non-UK domiciled deceased according to English law will therefore have to apply for a new grant of representation in England and Wales. Who can take out a grant of representation and how will depend on whether the deceased left a valid Will. Entitlement

Where a personal representative (PR) has received assets after death that were not assets to which the estate was entitled, a claim for those assets may arise by a third party. Where the claim is in respect of an annuity, the legal relationship between the annuity payer and the annuitant will depend on the manner by which the annuity was created. Often there will be no contractual relationship between the PRs and the annuity payer and therefore an equitable claim in restitution may be the only option. For further information,

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 transferred to the trustees • the trustees make a simple loan to the surviving spouse (unless the residue is settled on an immediate post-death interest (IPDI). This is often referred to as a debt/loan scheme. This option is usually avoided, due to the possibility of the debt owed by the surviving spouse being non-deductible for inheritance tax on that spouse's death—see section 103 of Finance Act 1986 and Phizackerley v HMRC • the deceased’s personal representatives

This Practice Note was originally produced in partnership with Tolley. When an individual dies, their estate is liable to income tax on any income that arose in the period from 6 April before death up to the date of death. There is also liability to capital gains tax (CGT) on any gain arising from the disposal by the deceased of any of their property in that period, ie in the tax year in which they died up to the date of death. The deceased’s personal representatives (PRs) will often need to liaise with HMRC to finalise the deceased’s tax affairs, both for the year in which they died and the previous tax year if the deceased was due to submit a self-assessment tax return and had not yet done so. This Practice Note describes how to quantify the income and calculate the tax due on any income or gains in the tax year up to the date of death. For information on liaising with HMRC to finalise the deceased’s tax affairs, see Practice Note: Finalising

Upon the death of a person who has left a valid Will, their real estate devolves upon their executors (Administration of Estates Act 1925). As a result, the relevant property in this scenario will have devolved upon the three executors, and, as there has been no assent to B that remains the case. Executors have various duties in respect of their role in administering the estate. This includes the establishment of the assets of the estate, their gathering in, and the safeguarding of those assets. Often this will include securing property and

Strictly speaking, termination of a trust on the ending of a qualifying interest in possession (QIIP) trust requires completion of the IHT100 with event form IHT100b, which deals with the ending of an interest in possession in settled property. However, in practice, we understand that if the trust ends on the death

Assuming the life tenant had a qualifying interest in possession, he is treated as the beneficial owner of the trust assets. Therefore, on death, it is his personal representatives who have the primary duty to file the IHT return. See Practice Note: Qualifying interest in possession trusts—IHT treatment (section entitled ‘Death of the beneficiary with the qualifying interest in possession’). Once the IHT estate charge has been calculated, the trustees will be responsible for paying that part of the tax that relates

This scenario gives rise to a few different interpretations. The deceased owner paid the garage in kind using the car, so that title to car passed to the garage during the owner’s lifetime. Consequently, the car did not form part of the owner’s death estate. If the car was the subject of a specific gift under the Will, the gift will have adeemed.

Where a person dies, all of their real estate devolves by operation of law on the personal representatives (PRs) of the deceased. By section 9 of the Administration of Estates Act 1925 (AEA 1925), where a person dies intestate, their real and personal estate vest in the Public Trustee (PT) until the grant of administration. That vesting does not, by AEA 1925, s 9(3), confer any beneficial interest in, or impose on the PT any duty, obligation or liability in respect of the property. Therefore, where a person dies intestate, the PT has no obligation to do anything in respect of the property, but rather occupies what is in effect a holding position pending a grant of letters of administration. As a result, the PT is very unlikely

On the deceased’s death intestate, his beneficial share in the property passes as part of his estate, and is to be administered by the administrator appointed to represent the estate by grant of letters of administration. Mother and father have equal entitlement to be administrator. See Practice Note: Appointment of personal representatives. Whether administrator or not, as a matter of estate administration, the father will have 'no right' to insist upon appropriating the deceased’s