Clarification needed around powers of executors and wording of will

Discussion in 'Wills, inheritances and gifts' started by TheBlueNile, 11 Nov 2018.

  1. TheBlueNile

    TheBlueNile Registered User

    Posts:
    11
    Hi folks

    Have been researching but can’t find a definitive answer and eager to find one

    Take this scenario, there are two executors of a will, the two executors are also the sole beneficiaries of the will, the will states that wish is to bequeath entire estate to the two beneficiaries (also executors), the entire estate consists of cash of 500000 and house valued at 700000

    Executor 1 wants the cash as wants to pay revenue off from cash assets of (500000) which will be at 33% and then not have to worry about selling house (basically does not want anything to do with holding onto the property)

    Executor 2 wants to keep house as has been living there and is undecided if will try to get loan to pay revenue off at 33% of 700000 or possibly sell house to pay revenue and downsize.

    My question is legally can the two executors make their own decision on settling of will as in they agree that one gets house and other gets money even if it does not cut 50/50, again will states ‘’bequeath entire estate’’ to the two.

    Why I ask is some time back I was told that the line ‘’entire estate’’ to two people means 50/50 (regardless of executors wishes) and cat is calculated by taking total value of estate 700000 (house) + 500000 (cash) = 1200000 * 33% = 396000 then divided by two gives each a cat liability of 198000? However if the executors could make their own interpretation of the words ‘’entire estate’’ that would mean both individuals cat liability would be very different.

    Again really trying to establish if executors can work out their own interpretation of ‘’entire estate’’ and agree between themselves how things are split even if it is not 50/50 but both are happy or is that all irrelevant as the words entire estate to two people means legally that everything is split 50/50?

    I would be very grateful for any insight
     
  2. Marsha25

    Marsha25 Frequent Poster

    Posts:
    94
    Have you already used up your allowance of 310,000, assuming it's a parent who died? If not then your tax liability is surely 95,700.
     
  3. TheBlueNile

    TheBlueNile Registered User

    Posts:
    11
    Hi Marsha, thanks for reply, the treshold is aunty to nieces and they have both used up the 32000
     
    Marsha25 likes this.
  4. TheBlueNile

    TheBlueNile Registered User

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    11
    Any further thoughts on this folks?
     
  5. mf1

    mf1 Frequent Poster

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    4,093
    Two things.

    1. Get proper advice.
    2. Revenue are likely to take the view that there is a great big chunk of CAT due , by both, on a 50% split. They may see any movement of the 50% shares as a gift between siblings but that will probably all add up to teh same amount of CAT. And a Deed of Family Arrangement will attract stamp duty

    Actually, make that three things-
    3. Seriously, get proper advice.

    mf
     
  6. Vanilla

    Vanilla Frequent Poster

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    4,103
    Depends on the exact wording of the will, this is one for a specialist TEP/CTA