My query is about whether you can appropriate a specific legacy.
Testatrix has four daughters A, B, C and D.
A B C contributed to the purchase of the family home and the testatrix signed a Declaration of Trust stating that on her death the house would be sold leaving the proceeds to A B C equally. Her Will specified the same as a specific gift. The residue was left to all four children A B C D but there is nothing except the property in the estate.
The proving executors are A & B two of the daughters entitled to the property. The property is selling for £30,000 more than the probate valuation submitted in the IHT205. Can the executors A & B sign a Memorandum of Appropriation to A B & C (all due to receive the proceeds of sale) and wipe out potential Capital Gains Tax?
Can the two executors appropriate the gift to all three beneficiaries who are entitled to the property (which is a specific gift) even though it does not form part of the residue?
Any thoughts please?
Blaser Mills LLP.