Deed of Assignment

Hi,

I have been instructed to deal with an intestate estate by the deceased’s only sibling. The deceased was not married and had no children. His parents are still alive but do not want to be involved in the administration or benefit from the estate which they want to go my client. My understanding is that the best way to deal with this is for the parent to assign their interest to my client, who can then apply for the grant pursuant to NCPR r24. However I am unable to find a precedent Deed of Assignment. Can anyone point me in the right direction?

Kind Regards

Prue Abrahams

Solicitor

Hanne & Co

The Candle Factory

112 York Road, London, SW11 3RS

DX 319501 Battersea 2

T: 020 7228 0017

F: 020 7326 8300

Email: pa@hanne.co.uk

Web: www.hanne.co.uk

Please note I do not work Fridays

In view of the latest Government advice our London offices are only open on a restricted basis. We continue to provide the same high-quality services to our clients remotely as all our lawyers and support staff are able to work from home. While we are able to receive visitors, this is only when absolutely necessary and by appointment only. Please contact us in the usual way but do use email where at all possible.

CYBER CRIME ALERT - IMPORTANT PLEASE READ. Please be aware that there is an increasing risk of cybercrime and online fraud. Consequently, we will never notify you of changes to important business information such as our bank details by email. If you receive any communication that suggests that the firm’s bank details have changed, it is not genuine. If you receive an email that gives Hanne’s bank account details – it will be a scam email. DO NOT transfer any sums to that account and DO NOT reply to that email. Instead please telephone us immediately.

We will not be responsible for any funds transferred to an incorrect account.

Please see our Privacy Policy here

I suggest they use a deed of variation, effective under s.142 Inheritance Tax Act 1984 (and s.62(6) Taxation of Chargeable Gains Act 1992?) so as also to avoid the potential tax issues.

A variation can be made pre-grant, even under an intestacy, enabling the new beneficiary to apply for the grant.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

While a deed of variation is effective for inheritance tax, and indeed capital gains tax, purposes, the Probate Registries do not recognise a deed of variation.

For Probate purposes the parents will either have to assign their entitlement over to their son or they can disclaim their right to the estate and the son could then make the application as the next person entitled to the estate on intestacy. One of them could of course appoint their son as an attorney for the purpose of applying for the Grant, which could then be followed by a deed of variation for inheritance tax and capital gains tax purposes.

Cliona O’Tuama

Solicitor

I agree with Cliona’s post, but if a disclaimer is used do ensure that there are no other siblings or issue of deceased siblings.

In any event, you may wish to check the parents’ finances - to consider whether intentional deprivation rules may apply, and whether there are any creditors who may be disadvantaged.

Kevin Mullen

Hi, I was wondering what you decided to do in the end?
I have a similar matter where the Probate Registry has advised me to get the brother of the deceased (the entitled beneficiary) to do a Deed of Assignment to assign his interest to his son (rather than a disclaimer) and so that the son can apply for the Grant.
I am concerned however about the tax consequences. It is important that the deceased’s estate is not added to the brother’s as he is 87 and his estate would already taxable. Is there another document referring to the provisions of s 142 (1) of the Inheritance Tax Act 1984 and s 62(6) of the Taxation of Chargeable Gains Act 1992 that i should also get the brother to sign or is this not necessary?

Many thanks

Helena Grady

An interesting view from the Probate court - clearly with no eye to any wider implications of the suggested course of action. Was their “advice” accompanied by a statement that they do not give legal advice?

If the brother does not wish to receive the inheritance then absent a disclaimer, he should consider a deed of variation, effective under s.142 IHTA 1984 and s.62(6) TCGA 1992. This will avoid him making a gift of the inheritance for IHT purposes.

Whilst one would hope that the Probate team would accept this as sufficient to enable the beneficiary of the variation – the son? – if whoever deals with it there is looking for something labelled “Deed of Assignment” it may take a little longer to get them to appreciate the variation is as effective as an assignment for their purposes.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals