Will

Meg231

I don't suppose anyone can explain this clause from the will for me please?
"Power to make any such appropriation as is authorised by section 41 of the administration of estates act 1925 but without being required to obtain any such consents as are referred to in that section (and even though one or more of my trustees may be beneficially interested in the appropriation)

tacpot12

This link, as well as explaining what appropriation is, also explains a specific reason why you might want to do it: What is an appropriation? – Birketts 

Meg231

Unfortunately I still don't understand it all, especially the bit about "without being required to obtain any such consents as are referred to in that section" 

tacpot12

So, the Administration of Estates Act 1925 would normally require certain consents if an appropriation is being made. It might be easier to look at the legislation: Administration of Estates Act 1925 (legislation.gov.uk) to see what consents are required by it.

The wording in the Will means that you don't need to obtain the consents required in the Act. I'm not a legal expert, and so you should check this with a solicitor (who the estate should pay for), but my reading is that you need the consent of the person who is receiving the appropriated assets and you need the consent of someone (or their trustee) if appropriating the asset means that the person will stop receiving an income from the asset.

Even if you don't need the consent, you might need to record the appropriation. The following thread might help in this respect: Deed of Appropriation requirements - Trusts Discussion - The Trusts Discussion Forum

bobster2

Meg231 said:

I don't suppose anyone can explain this clause from the will for me please?
"Power to make any such appropriation as is authorised by section 41 of the administration of estates act 1925 but without being required to obtain any such consents as are referred to in that section (and even though one or more of my trustees may be beneficially interested in the appropriation)

Appropriations are a technique for mitigating the amount of Capital Gains Tax payable by an estate.

In another thread, you have mentioned the value of the property in this estate that could generate a CGT liability.

Given the value of the property (about £200k) and the current rate of house price growth it's hardly likely to generate much in the way of CGT liability. Surely not enough to make it worth thinking about appropriations.

Meg231

bobster2 said:

Meg231 said:

I don't suppose anyone can explain this clause from the will for me please?
"Power to make any such appropriation as is authorised by section 41 of the administration of estates act 1925 but without being required to obtain any such consents as are referred to in that section (and even though one or more of my trustees may be beneficially interested in the appropriation)

Appropriations are a technique for mitigating the amount of Capital Gains Tax payable by an estate.

In another thread, you have mentioned the value of the property in this estate that could generate a CGT liability.

Given the value of the property (about £200k) and the current rate of house price growth it's hardly likely to generate much in the way of CGT liability. Surely not enough to make it worth thinking about appropriations.

I don't really understand that, my concern is can I decide how much I pay for the house as long as I pay the same or above market value or do my neices and nephews get to decide how much I have to pay

bobster2

Meg231 said:

bobster2 said:

Meg231 said:

I don't suppose anyone can explain this clause from the will for me please?
"Power to make any such appropriation as is authorised by section 41 of the administration of estates act 1925 but without being required to obtain any such consents as are referred to in that section (and even though one or more of my trustees may be beneficially interested in the appropriation)

Appropriations are a technique for mitigating the amount of Capital Gains Tax payable by an estate.

In another thread, you have mentioned the value of the property in this estate that could generate a CGT liability.

Given the value of the property (about £200k) and the current rate of house price growth it's hardly likely to generate much in the way of CGT liability. Surely not enough to make it worth thinking about appropriations.

I don't really understand that, my concern is can I decide how much I pay for the house as long as I pay the same or above market value or do my neices and nephews get to decide how much I have to pay

This has nothing to do with that issue - ask that on your other thread. You don't need a Deed of Appropriation to do that.