Death and Personal Representatives: Period of administration and ascertainment of residue: Personal representatives: residue: providing funds
When the assets and liabilities have been quantified the personal representatives have to consider how they can pay
- the estate’s liabilities
- any pecuniary legacies provided for in the will.
If they do not have sufficient liquid funds they will have to sell assets in order to raise funds. Occasionally they may agree with legatees entitled to pecuniary legacies that the legatee should accept an asset in satisfaction or part satisfaction of the pecuniary legacy.
Disposing of assets may give rise to further Capital Gains Tax liabilities which have to be agreed before residue can be ascertained.
Residue is only ascertained when the personal representatives have both established the net worth of the estate and provided the liquid funds to pay liabilities and pecuniary legacies. Once that point is reached residue is ascertained and it is irrelevant that the assets have not been distributed.