I am dealing with an estate where under the will, the main residence passed in a specific legacy to the trustees of an IDPI trust for the surviving spouse which terminates just 2 years and 1 day after the date of death, and then the will provides that the main residence is transferred to the trustees of a pilot discretionary trust (with CLT implications for the income beneficiary).
At the date of death the property was valued at £1.8M for probate purposes and the market value is currently thought to be worth £2.1M. The property remains an unadministered asset of the estate and has not been transferred by the executors to the trustees of the IPDI trust as yet.
The question I have is if the executors assent the property directly to the pilot discretionary trust trustees pursuant to the will (and in doing so skip over transferring to the IPDI trustees), can that event be deemed to take effect at probate value for CGT purposes (so that the pilot discretionary trust trustees take at probate value)?
Any thoughts would be much appreciated.