Death and Personal Representatives: Legatees and their treatment: Acquisitions by legatees:Legatees: acquisitions: payments by legatees to personal representatives
If an estate has insufficient liquid assets to pay its liabilities and a legatee wishes to receive a particular asset rather than it being sold on the open market by the personal representatives the legatee may agree with the personal representatives that he will provide them with sufficient funds to settle the estate’s liabilities in return for them transferring the asset to him. Such an arrangement was considered in the case of Passant v Jackson, 59TC230. The Appeal Court held that the arrangement was a sale of the property. So in any case involving a similar arrangement it should not be accepted that there was merely a transfer of an asset to a legatee under cover of TCGA92/S64 (4).