Appropriation of Shares prior to Grant of Probate

I am dealing with an estate with a large investment portfolio. The deceased passed away in April and the shares have increased in value substantially. They can be realised immediately and paid to HMRC directly as the proceeds of the sale will be needed to pay the IHT.

Is it possible to complete a Deed of Appropriation and appropriate the shares to the three beneficiaries prior to receiving the Grant which is likely to be many months away?

Rashid Azizi
DWFM Beckman Solicitors

Yes, provided that named executors are intending to prove the will, as they derive their authority from the will…

If an intestacy or the will is being proved other than by the executors, then NO, as they will derive their authority from the grant.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Thank Paul.

Yes there is a Will and the Executor is one of the children of the deceased together with this firm. The firm will have power reserved to them. So the child will appoint out to all three of the children who are beneficiaries, albeit the net proceeds sale will be used to pay the IHT.

Rashid Azizi
DWFM Beckman Solicitors

I have always thought that assets which were appropriated couldn’t then be used to pay liabilities in the estate because the effect of the appropriation is to create a bare trust for the beneficiaries. I stand to be corrected as I can see it would be useful to be able to proceed on that basis.

image450818.jpg

Qualified, Regulated, Insured, Professional.​

Mrs J E Bennell
, head of Private Client

RLK Solicitors Ltd
SRA Number: 522998

dd:
0121 516 1960
t: 0121 450 7800

f: 0121 450 7801

image286249.png
jbennell@rlksolicitors.com

Following on from this, Is it possible to do a subsequent Deed of Variation after a Deed of Appropriation has been completed?

Rashid Azizi
DWFM Beckman Solicitors

Yes - s.142(6) Inheritance Tax Act 1984 specifically allows the dispositions to be varied even after the estate has been distributed (provided, of course, that the other requirements of the section are complied with).

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals