½Û×ÓÊÓƵ

Realising assets, paying liabilities

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Realising assets, paying liabilities

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

When the personal representatives have obtained the grant of representation in the estate, they begin to collect in the deceased’s assets and pay liabilities. When realising the assets, the first decision for the personal representatives is what assets should be realised. In coming to this decision, they should have regard to the following matters:

  1. •

    repayment of loan raised to pay inheritance tax ― the general rule is that inheritance tax is paid from the residuary estate unless there is a contrary direction in the Will. Assets should not be realised to pay inheritance tax if they have been specifically gifted under the terms of the Will

  2. •

    the statutory order for the application of assets in a solvent estate for the payment of debts under the Administration of Estates Act 1925 Sch 1, Part II, in the absence of contrary intention by the deceased in the Will, should apply - see below

  3. •

    ease of realisation ― some institutions may only require sight of a sealed copy of the grant of representation and

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more Read more

Winding up a trust ― legal, administrative and compliance issues

Winding up a trust ― legal, administrative and compliance issuesOverviewWhen winding up a trust, there are legal formalities and compliance issues that need to be dealt with, as well as IHT and CGT consequences that flow from the termination. This guidance note considers when and how a trust comes

14 Jul 2020 14:01 | Produced by Tolley Read more Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Read more Read more