Deeds of Appropriation in Estate Administration - Practical Guidance, Tax & Pitfalls

Introduction

With falling capital gains tax exemptions, an increasing number of taxable estates and continued volatility across property and investment markets, personal representatives need to consider carefully how estate assets are appropriated to beneficiaries. A deed of appropriation can be a valuable tool in the administration of an estate, but only when used appropriately and drafted correctly.

This practical short webinar will explain what a deed of appropriation is, why it can be useful and the circumstances in which it should and should not be considered. It will explore how appropriation can help achieve tax and administration objectives while also highlighting the risks of failing to consider this option.

You will gain practical guidance on when and how deeds of appropriation should be used, together with key drafting considerations and common pitfalls. The webinar will help you as a practitioner to make informed decisions, avoid unnecessary costs and reduce the risk of personal representatives facing claims from beneficiaries.

What You Will Learn

The webinar will cover the following:

• What a deed of appropriation is and the legal basis for using one in estate administration
• When to consider an appropriation, particularly where estate assets have increased in value
• The capital gains tax implications of appropriating assets to beneficiaries before sale
• Why timing matters and the potential tax consequences of getting it wrong
• Distinguishing between an appropriation and an assent
• Navigating common issues and problem areas in practice
• The practical and legal risks of getting an appropriation wrong
• Practical drafting tips for ensuring deeds of appropriation are properly documented
• Identifying opportunities to use appropriation as part of effective estate tax planning