Person died in 1990. One asset left (land £300-£500k) not registered. 15 Residual Beneficiaries. Original Professional Executors have died, Two Beneficiaries took over acting as Trustees? They have now resigned and two further Professional Estate Agents have taken over as Trustees.
Very small grazing income to catch up with I.R…
Is this Estate Income? or Trust Income?
Are there any outstanding liabilities, apart from income tax on the grazing income? If not it sounds like residue has been ascertained so it is trust income or personal income of the residuary beneficiaries (or a mixture of both) depending on whether their interests are subject to a continuing trust or not. The date residue was ascertained will be when the last liability was discharged or provided for, after which income arising will no longer be estate income.
Jack Harper
If this is still an estate, then the role of executor will have passed to the PR of the last surviving executor (via the chain of representation) and they could not appoint the beneficiaries to continue to administer the estate. On the basis that it is being administered other than by the executors, or the executors of the last surviving executor, it would seem to be being treated as a trust, so I would regard the income as trust income. Mindful of the period that has elapsed since death, it is unlikely the administration of the estate is ongoing (or that residue has yet to be ascertained) as Jack suggests.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals