Deed of Appropriation to Beneficiaries

Good morning all,
We are dealing with a matter where probate was obtained earlier this year. The probate valuation for the Property was £1.1m. The Property is being sold for a higher price (£2.275m). There are two Executors who are also the only beneficiaries under the Will. The Executors are exploring their options to appropriate the Property to themselves as beneficiaries in order to utilise any capital gains tax allowances.
Is it possible to appropriate 50% of the house to one beneficiary and leave the balance in the estate?
Many thanks in advance for your advice and comments.

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It is certainly possible to appropriate a share of the property to one beneficiary and retain another share in the estate. Indeed I don’t know why you don’t go the whole hog and appropriate a one-third share to one beneficiary, another one-third to the second beneficiary and retain a third in the residue of the estate. That will give the estate and its beneficiaries three personal allowances. The appropriations can take place simultaneously with completion of the sale.

Julian Cohen

Simons Rodkin

Thank you for your contribution.

With regards to the appropriation value, should we retain a third in the residue of the estate - I presume that this would be the full sale price amount - notwithstanding the third which is being retained in the residue of the Estate?

Many thanks

The property will need to be valued for appropriation – applying Re Charteris 1917. If the appropriation is made between a sale being agreed and it being made, I would be inclined to adopt the sale price.

Paul Saunders FCIB TEP

Independent Trust Consultant

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