W is the exec of H’s estate and is entitled to 80% of the residuary estate. The other 20% is passing to charities. Based on the assets at the time of the death this means that charities would be entitled to about £46,000.
One of the assets in the residuary estate is an ISA worth £200,000 which she wishes to retain. She would like to use her own funds to be able to discharge the share which the charities will otherwise receive.
Please can somebody explain the logistics of this in terms of how we would determine the value which the charity will receive. On a simple straightforward basis, the asset would usually be sold and the charity would simply take 20% of the sale proceeds at the date of sale (plus a share of any interest earned up to date of transfer). In a case like this, how do we decide the date when the 20% is fixed given this particular asset is likely to be fluctuating in value between date of death and date of encashment?
Your thoughts would be appreciated.