UUÂãÁÄÖ±²¥

When the personal representatives have obtained the grant of representation in the estate, they begin to collect in the deceased’s assets and pay liabilities. When realising the assets, the first decision for the personal representatives is what assets should be realised. In coming to this decision, they should have regard to the following matters:

1. •

   repayment of loan raised to pay inheritance tax ― the general rule is that inheritance tax is paid from the residuary estate unless there is a contrary direction in the Will. Assets should not be realised to pay inheritance tax if they have been specifically gifted under the terms of the Will

2. •

   the statutory order for the application of assets in a solvent estate for the payment of debts under the Administration of Estates Act 1925 Sch 1, Part II, in the absence of contrary intention by the deceased in the Will, should apply - see below