Is it possible to appropriate a share in a property prior to sale held in an estate (estate 1), whereby a grant of probate has been issued, directly to a beneficiary of another estate (estate 2) (the deceased in estate 2 was a beneficiary of the deceased in estate 1)?
Does it make a difference if the grant of probate has not been obtained in estate 2?
The beneficiary of estate 2 is a “stranger” so far as estate 1 is concerned, and has no right to receive any of the assets from estate 1.
However, if the PR of estate 2 assents to the beneficiary the chose inaction, being estate 2’s entitlement to estate 1, then the beneficiary will replace estate 2 as the beneficiary of estate 1 and the PRs of estate 1 can account directly to the beneficiary.
On the basis that the executor’s authority comes from the will, it is technically possible for the executor of estate 2 to appropriate, if not assent that estate’s entitlement in estate 1 to the beneficiary. Having said that, without seeing legal evidence of the beneficiary’s right, which would include probate in estate 2 I would expect the PR of estate 1 to be wary of paying any of the proceeds of sale to the beneficiary.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
In the above scenario, I wonder what values would be attributed for IHT and CGT purposes.
For IHT in estate2, would the value be uplifted to market value at the date of the second death? If so, would this become the base cost for the ultimate beneficiary with regard to CGT?
Presumably the original market value at the time of the first death would not pass through to the second estate for IHT or the ultimate beneficiary for CGT?
I should mention that whilst I’ve been a regular forum reader for quite some time, this is my first post - thanks to all members for providing a constant source of informative and thought-provoking posts.