Husband died and left his entire estate to his wife. Son is sole executor.
Wife now wants to pass on part of the estate to the son - including investments and rental properties. We do not want to do this by deed of variation as there is no nil rate band remaining.
Do we need to transfer/assent to her first to evidence that she is making the gifts or can this be done as a paper exercise e.g. resolution, so that the executor/son can transfer direct to himself out of the estate?
I would suggest an equitable Assent and Deed of Assignment whereby the property is assented to wife, who then gifts this to son. Thereafter, the Land Registry AS1 form can legally transfer ownership to son. (The AS1 form can also refer to the Assent and Assignment in the additional provisions section, so it is clear wife inherited the property and subsequently gifted this to son.)
I suggest you consider a deed of variation which includes only the CGT declaration, omitting the IHT declaration. That way, whilst the gifts will be a PET by the widow, no charge to CGT will fall on her as s.62(4) TCGA 1992 will apply, so that the son will take at “probate value” as “legatee”.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
