In general a person who takes an absolute interest as a
residuary legatee, under English law and many other legal systems,
is entitled, not to the assets
in specie of the testator, but to a
chose in action, enforceable against the
executors.
This means the executors must administer the estate and
transfer the clear residue, or a share thereof, as the case may be
to the beneficiary. The same rule applies in the case of intestacy.
This is a similar rule to the
ius crediti to which a Scots beneficiary is
entitled.
For IHT however, the deceased is treated as having a direct
interest (in the whole or a share, as the case may be) in the net
assets of the testator’s (or intestate’s) residuary
estate. ) See
IHTM22031
Consequently you must, in such a case, consider separately
the situs of each of the underlying assets.
For example, the excluded property provisions in IHTA84/S6
(2) may apply to qualifying securities included in the
unadministered estate (
IHTM04260)
