Family Provisions and Post Death Variations

• What must a beneficiary do to disclaim an inheritance for IHT and CGT purposes?

  The disclaimer must be in writing.
• What happens to a specific legacy if it falls into the residue?

  It becomes part of the residue estate.
• What occurs if the beneficiary of the residue disclaims their inheritance?

  The inheritance passes through intestacy.
• Under what conditions can a beneficiary change who receives their inheritance?

  The variation must be in writing, within 2 years of death, and without monetary consideration.
• What are the consequences if the conditions for changing a beneficiary are not met?

  The gift is treated as a transfer of value for IHT and deemed disposal for CGT by the original beneficiary.
• How are chattels transferred to a beneficiary?

  Chattels are transferred by delivery and confirmed as received.
• What must be completed for the transfer of company shares?

  A stock transfer form must be completed and sent with the official copy of the grant and a share certificate.
• How is land transferred to a beneficiary?

  Land is transferred by assent in writing, and the beneficiary must register their interest with HMLR.
• Who typically covers the costs of transferring property unless stated otherwise in the will?

  The beneficiary typically covers the costs of transfer.
• What are beneficiaries entitled to regarding income from property after death?

  Beneficiaries are entitled to income from property arising after death.
• What should be done if legacies cannot be paid in full?

  Legacies should abate in proportion.
• What can a beneficiary request regarding trust property to satisfy a pecuniary legacy?

  A beneficiary can request particular assets to satisfy the pecuniary legacy.
• Can minors give valid receipts for property unless the will states otherwise?

  No, minors cannot give valid receipts unless the will provides otherwise.
• Who can accept a receipt on behalf of a minor?

  Parents of the minor can accept a receipt.
• What can a personal representative (PR) do with property until a minor reaches 18?

  The PR can hold the property until the minor reaches 18.
• What must a PR do before distributing the residue estate?

  The PR must calculate any tax liability and pay it.
• Under what conditions can a PR change their actions?

  A PR cannot change their actions unless authorized by the will or agreed upon by beneficiaries.
• What accounts must PRs keep during estate administration?

  • Capital account: assets of the estate
  • Distribution account: amount each beneficiary is entitled to
  • Income account: dividends received during administration
• What must PRs do with the accounts they keep?

  Accounts must be sent to residuary beneficiaries for endorsement.
• What happens if a beneficiary refuses to approve the accounts?

  The PR can ask the court to approve the accounts or pay the beneficiary's share into court.
• What is the definition of an assent in estate administration?

  An assent is the vesting of legal title to an asset in the beneficiary.
• When do assets relate back to in the context of an assent?

  Assets relate back to the date of death.
• What must be included in an assent regarding the transfer of assets?

  The assent must be in writing, signed by the PR, and name the person receiving title.
• What must HMLR be notified of in relation to an assent?

  HMLR must be notified of the change in ownership.
• Do beneficiaries have a legal or equitable interest in estate assets before administration is completed?

  No, beneficiaries do not have a legal or equitable interest until administration is completed.
• What action can beneficiaries take against a PR?

  Beneficiaries can bring a personal action against a PR.
• Under what condition is a PR not liable for their actions?

  A PR is not liable if they acted honestly, reasonably, and ought fairly to be excused.
• What is a tracing claim that beneficiaries may use?

  A tracing claim allows beneficiaries to recover property that has been wrongly transferred to someone else.
• What is the purpose of the Inheritance (Provision for Family and Dependents) Act 1975?

  It allows applications to set aside terms of the will or vary an intestacy if reasonable financial provision has not been made.
• When must an application under the Inheritance (Provision for Family and Dependents) Act 1975 be made?

  The application must be made within 6 months of the grant.
• What discretion does the court have regarding late applications under the Inheritance (Provision for Family and Dependents) Act 1975?

  The court has discretion to allow an application out of time.
• Who is entitled to make a claim under the Inheritance (Provision for Family and Dependents) Act 1975?

  Surviving spouse, former spouse who has not remarried, child of deceased, person treated as a child of the family, person maintained at time of death, and cohabitant for 2 years before death.