IHTM34153 - Sales: appropriations

An appropriation of shares made by the personal representatives is treated as a sale for the purposes of this relief if it is made

  • to satisfy a pecuniary legacy
  • with the consent of the legatee (the person who receives the legacy under the will, where there is no power of appropriation without that consent.

If however the Will allows the appropriation of assets in satisfaction of a pecuniary legacy without consent, such appropriation, even if made with consent, should not be treated as a sale.  

If it is claimed that the personal representatives do not need the legatee’s consent to the appropriation, as long as they can confirm that the legatee falls within s.41 Administration of Estates Act 1925 then the appropriation can be accepted.  (Legatees falling within the scope of the act include unborn children, untraced beneficiaries, a mentally incapacitated person without a receiver.)  In all other cases you should refer the claim to Technical (IHTM01081).