Cash shortfall; Long lease, short lease; UK tax or not? VAT racing
Cash shortfall
The implications of a capital release being used to pay annuities and legacies.
I am a joint trustee of a will trust where a residence is to be provided for the deceased’s partner until her death. It is also provided that she should be paid an annuity of £25 000 a year net of income tax. Along the way legacies are to be paid to the grandchildren as they turn 25.
Unfortunately we are now in the situation where the cash ran out three years ago. Only one of the grandchildren has reached 25 and the house is worth some £400 000. The deceased’s partner is prepared to downsize because the garden is too much for her.
However should the capital released be used to pay her three outstanding years’ annuities and recommence these in accordance with the terms of the will?
Because...
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