Father died intestate in 2006 - everything passed to his 2 sons A and B by intestacy, LOA only obtained in 2020 by both sons (both acting as administrators) - Son A then suddenly died intestate in 2021 before the Father’s property could be assented to son A and B.
Nothing has been done with son A estate’s. I am now instructed to obtain LOA for Son A estate by his brother, Son B…
In the meantime, Son B advises me as himself and his brother, have never married, have no chidren and their parents are both dead and that they would have instructed a conveyancer to assent their Dad’s property to them as JT tenants as opposed to TIC.
Son A has left 2 properties (excluding Dad;s property and some bank accounts as part of his estate.
I have 2 questions.
Should I be including 50% of Dad’s property in Son A estate when reporting to HMRC here when the property still remains vested in Dad’s sole name?
Once I have the LOA for son A - Do you think Dad;s property can just be assented to surviving son B, who is ultimately going to be the sole beneficiary of his brother’s estate?
Presumably, as the estate of F has not been administered at the time of A’s death, then A possesses no beneficial interest in any part of F’s estate (no legal/equitable interest can be held by a beneficiary prior to the completion of the estate). Hence, the 50% to which you refer should not be included as part of A’s estate. Thus, the need (as Andrew commented) for completion of IHT415.
MalcolmFinney
Whilst a beneficiary has no right to any particular asset of an estate before it is appropriated to them, immediately upon the death of the deceased they acquire a chose in action for the due administration of the estate. It is therefore, perhaps, misleading to suggest that A has no beneficial interest in any part of F’s estate.
As Andrew and malcolm have both confirmed A’s entitlement under F’s intestacy, being an intertest in an unadministered estate, should be disclosed on IHT415.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
I don’t agree with Paul’s comment “Whilst a beneficiary has no right to any particular asset of an estate before it is appropriated to them, immediately upon the death of the deceased they acquire a chose in action for the due administration of the estate. It is therefore, perhaps, misleading to suggest that A has no beneficial interest in any part of F’s estate”.
The beneficiaries neither possess a legal or equitable interest in any of the unadministered deceased’s assets (ie until assent/conveyance). The existence of a chose in action in the estate is a separate matter.
My comment above is, I would suggest, not misleading as A does not possess any beneficial interest in F’s estate irrespective of the chose in action.