Death and Personal Representatives: Legatees and their treatment: Disposals of legatees interest: Legatees: sells interest in estate before assets vest
It can sometimes take a considerable time before residue of an estate is ascertained and the assets distributed to the legatees. Because of this a legatee who wishes to raise money quickly may decide to sell his or her interest in the estate to a third party. The legatee will probably have to sell at a discount compared to his or her likely expectation of the amount to be received from the estate because the purchaser has no certainty as to precisely what assets will eventually vest from the estate and when those assets will vest.
At the time of this disposal the legatee does not have an interest in any specific assets of the estate. All he or she owns is a chose is action, see CG30760. This is personal to the legatee and cannot be disposed of. What the legatee actually sells is an expectation of property to be received by the estate in the future.
The effect of this transaction is the same as when a legatee in return for full consideration executes a deed of variation which is not retrospective to the date of death. The only difference in the case of a sale to a third party at arm’s length is that the disposal consideration is the price received rather than the market value of the expectation. You should therefore follow the instructions at CG31940+ substituting as the disposal consideration the sum received.