Pecuniary legacy meaning

See Q&A: Is interest due on the late payment of a nil-rate band legacy paid after the end of executor's year? Numerous commentators describe a nil rate band gift as a pecuniary bequest (for example, a sum matching the deceased’s unused IHT nil rate band). Still, indeed, the question remains whether or not...

In this issue: Trusts Powers of attorney and advance decisions UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Contentious trusts and estates Pensions, insurance and tax-efficient investments Scotland, Wales and Northern Ireland Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&A Useful information Trusts TPR acts against trustees over ERI breaches involving prohibited loans and loss of scheme funds The Pensions Regulator (TPR) has issued a report under section 89 of the Pensions Act 2004, emphasising the grave ramifications for trustees who breach the employer-related investment (ERI) rules. It outlines enforcement measures taken against two former trustees of the Worthington Employee Pension Top-Up Scheme (the Scheme) — a trust-based money purchase occupational scheme created in 2006 — after prohibited...

Legacy or bequest The expressions ‘legacy’ and ‘bequest’ are ordinarily confined to a sum of money or a personal item, though in some situations they can also denote a gift or devise of land. Furthermore, whether a ‘legacy’ encompasses an annuity turns on the context. Sir William Page Wood VC, in Gaskin v Rogers, explained that where a Will merely uses the word ‘legacy’ and directs a distribution amongst legatees, then, unless the face of the Will shows the testator has departed from the word’s settled legal meaning, annuitants are included. He added that the term ‘pecuniary legatees’ does no more than exclude specific legatees—namely, those entitled to particular chattels—and it does not, prima facie, prevent annuitants receiving the same advantage as they would have enjoyed had the Will spoken simply of ‘legatees’ rather than ‘pecuniary legatees’. All such interpretative rules remain subject to the fundamental principle: determine, from the Will read as a whole, what can be gathered of the testator’s intention where the words employed are not...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

Identification of beneficial interests The personal representatives (PRs) of an estate must establish: the beneficiary or beneficiaries who are entitled to each specific legacy the precise entitlement of each beneficiary the point in time when each legacy ought to be paid out Executor's year PRs have a minimum of one year from the date of death before beneficiaries may require any distribution. Even after that year has passed, the PRs might still not be ready to distribute the estate. Deciding to distribute Before starting to distribute legacies, PRs should assess whether distribution should be deferred because other administrative matters remain unfinished or potential issues could arise, such as: unpaid tax liabilities outstanding debts unknown beneficiaries rectification of the Will a family provision claim under the Inheritance (Provision for Family and Dependants) Act 1975 a variation or disclaimer any other uncertainties affecting the estate Beneficiaries Duty to...

I leave [ free of tax ] to [ full name of beneficiary ] of [ full address of beneficiary ] together with [ full name of beneficiary ] of [ full address of beneficiary ], in [ indicate shares eg equal ] portions, or (should either predecease me) entirely to the survivor, the total amount of £[ insert the amount ]...

1 In clause 2 below, ‘the Sum’ means the amount arrived at by dividing £[ insert amount of legacy ] by the figure in the Index of Retail Prices for the month in which this Will is executed, allowing for any re-basing of that Index that may have occurred in the interim, and then multiplying by the corresponding figure in that Index for the month of my death. If, at that time, the latter figure is unavailable (whether because that Index has ceased publication or for any other reason), my Trustees—who may, if they think fit, refer to any other index they consider relevant and obtain whatever advice they deem appropriate—shall decide what, in their opinion, that figure would have been had it been available, and shall use the figure they determine for this calculation; their decision shall bind [ insert name of beneficiary ] and all persons interested in my estate. 2 I give the Sum [ free of tax ] to [ insert full name...

THIS DEED THIS DEED is executed on [ date ] Parties [ Names of statutory beneficiaries entitled on intestacy ] of [ addresses ] (the Statutory Beneficiaries) [ Name of new beneficiary of inserted legacy ] of [ address ] (the New Beneficiary) [ Names of administrators ] of [ addresses ] (the Administrators) BACKGROUND (A) [ Name of deceased ] (the Deceased) died without leaving a will on [ date of death ], and was survived by the Statutory Beneficiaries, being the Deceased’s [ [ [ surviving spouse OR civil partner ] ] AND [ [ details of surviving relatives who are entitled on intestacy ] all of full age ] ]...