CG30781 | Death and Personal Representatives: Period of administration and ascertainment of residue: Personal representatives: residue: early date

If there is a will the personal representatives and legatees may claim that administration has ceased and residue has been ascertained at an early date if:

• the legatees would be liable at a lower rate of Capital Gains Tax than the personal representatives on the disposal of assets in the estate

• the legatees have any unused annual exemption that could be used to cover the gains

• the legatee is a charity and any gain on the disposal would be exempt.

In cases of intestacy you will only see claims under the first two bullet points as a charity will not qualify as a legatee under the rules of intestacy.

Applying the rule that assets remain vested in the personal representatives until residue has been ascertained unless specific steps have been taken to vest the assets in advance of ascertainment of residue usually defeats unwarranted claims in this area.