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Wording in will
gsi
Posts: 10 Forumite
A will stipulates amounts bequeathed to 4 beneficiaries (A, B, C, D), and "a sum of money equal to the maximum amount I can gift without inheritance tax becoming payable as a result of my death free of any inheritance tax to X". So, I take this to mean that X would inherit the current threshold of £325,000 minus the amounts bequeathed to A, B, C, and D?
However, the will also says "I give my personal possessions, not otherwise dealt with by this Will to my executors with a request they distribute them in accordance with any wishes of mine that come to their attention free of any inheritance tax". There was nothing else about personal possessions (apart from being allowed to sell them to pay debts/costs/tax etc.) and no wishes conveyed - suggesting the possessions should either be split between the executors (presumably evenly) or perhaps all given to one of them. My questions are:
1) can the executors decide the split themselves?
2) as beneficiary X is also an executor, does that mean that if they inherit any of the possessions then the sum of money they receive (as mentioned above, originally thought to be £325,000 minus amounts bequeathed to other beneficiaries, so avoiding inheritance tax) needs to be reduced by the value of any assets taken?
The purpose of the will was to give away as much as possible without incurring inheritance tax with the residue going to the spouse and so also avoiding inheritance tax on that part. So it seems that the non-spouse executor could either inherit some possessions if they wish (but with the sum of money they receive to be reduced by the value of such possessions) or just take no possessions which would maximise the sum of money they could inherit without inheritance tax being payable?
Wanted to check with any experts that is indeed what the will intends to happen?
However, the will also says "I give my personal possessions, not otherwise dealt with by this Will to my executors with a request they distribute them in accordance with any wishes of mine that come to their attention free of any inheritance tax". There was nothing else about personal possessions (apart from being allowed to sell them to pay debts/costs/tax etc.) and no wishes conveyed - suggesting the possessions should either be split between the executors (presumably evenly) or perhaps all given to one of them. My questions are:
1) can the executors decide the split themselves?
2) as beneficiary X is also an executor, does that mean that if they inherit any of the possessions then the sum of money they receive (as mentioned above, originally thought to be £325,000 minus amounts bequeathed to other beneficiaries, so avoiding inheritance tax) needs to be reduced by the value of any assets taken?
The purpose of the will was to give away as much as possible without incurring inheritance tax with the residue going to the spouse and so also avoiding inheritance tax on that part. So it seems that the non-spouse executor could either inherit some possessions if they wish (but with the sum of money they receive to be reduced by the value of such possessions) or just take no possessions which would maximise the sum of money they could inherit without inheritance tax being payable?
Wanted to check with any experts that is indeed what the will intends to happen?
0
Comments
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These type of bequests used to be common before the introduction of spousal exemption back in the 1970s since when they are more or less obsolete, so I assume this is a very old will.Is the spouse still alive? How much is are A BC and D getting?0
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