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Paying Bequests from Interest
HappyScotsman
Posts: 99 Forumite
A few months ago I stumbled on something on a charity's site and wish I'd made a note of it.
From memory it said something to the effect that the executors could pay a bequest using just the interest (or income) from the estate. This would mean HMRC would reduce the tax liability.
Is this a real thing? If it is, can someone point me to source so I can did deeper please.
From memory it said something to the effect that the executors could pay a bequest using just the interest (or income) from the estate. This would mean HMRC would reduce the tax liability.
Is this a real thing? If it is, can someone point me to source so I can did deeper please.
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Comments
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It is common for executors to use estate income to pay legacies, but no way this can reduce the tax liability on the executor. Something has been lost in translation. GiftAid doesn't exist for estates. Your article may perhaps have been looking at the tax advantage of making a lifetime gift to charity versus a legacy.
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Found the source ... https://rnli.org/support-us/give-money/leave-a-gift-in-your-will/for-executors-and-solicitors
So more like the benefactor can gain from the taxed income rather than the estate.0
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