R185 and estate income/ client account interest

Trusts Discussion
1

Hi

I think I am getting confused regarding this. When preparing R185s for estate income, a Will provided for numerous pecuniary legacies and then the residue divided between six charities in various shares. The only estate income is a small amount of interest on savings accounts for which income tax will need to be paid from the estate. Is it just the six charities (residuary beneficiaries) that should be provided with the R185s?

Also, for the purposes of calculating the income tax due from the estate would we also include interest added to the estate earned on estate monies whilst in client account. If so and the pecuniary legatees also receive a share of interest would they then also require an R185?

Thanks

2

Yes, just the charities should be provided with the R185s and yes, the interest earned on estate monies whilst in the client account should be included and no, the pecuniary legatees do not require R185s.

Paul Storrie
Storrie and Company