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Where Taxpayers and Advisers Meet

Clinging on to RNRB

Uther
Posts:9
Joined:Mon Oct 30, 2017 8:45 pm
Clinging on to RNRB

Postby Uther » Tue Nov 26, 2019 1:17 pm

The executor of a will is directed to sell a property (which is closely inherited) and divide the net sale proceeds
between beneficiaries (to obtain full RNRB).

However at the time of death there is not enough money left in the rest of the estate to fully pay all debts expenses etc.
Therefore 20% of the property sale proceeds would need to be appropriated.

1. Can the executor carry out this appropriation without a specific will clause
2. Am I right in thinking this will reduce available RNRB to 80%

Any way of retaining full RNRB ?
For example: payback from beneficiaries the amount needed as a distribution condition?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Clinging on to RNRB

Postby maths » Tue Nov 26, 2019 5:55 pm

Assuming close inheritance by lineal descendants the application of any part of the property's sale proceeds to settle debts etc should not adversely impact on the availability of the RNRB for each beneficiary (up to the RNRB limits).

It should not reduce the RNRB by 20% as mentioned although I understand that HMRC may take a different view ie the RNRB would need to be reduced by 20%.

In the absence of specific provisions in the will the AEA 1925 provides for the disposal of assets of the deceased's estate by the Executors to settle debts, etc.


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