Memorandum/Deed of Appropriation

Trusts Discussion
1

I am dealing with an estate which makes provision for 2 legacies of £150,000 each to step-children. A legacy of £400,000 to nephew and the remainder to charity.

There is a property in the estate valued at £357,500.

Am I able to appropriate £300,000’s worth of the property to the 2 step-children in order to claim the residence nil rate band?

Thank you in advance

2

No, I do not believe so, as the RNRB does not apply to appropriations (see IHTM46033).

Kind regards

Ihsan Ali
I Will Solicitors Ltd

1 Like
3

Hi Ihsan,

Thank you for your response, this is really helpful.

I believe a Deed of Variation would then suffice to gift £300,000’s worth of property to the stepsons?

Thank you in advance,

Carmen

4

Yes a DoV is likely your best solution here

5

I agree with Tobias, and I would just add that all the beneficiaries would need to be a party to the Deed of Variation, including the charity, so they will need to be informed.

Kind regards

Ihsan