Malcolm Finney takes a look at the complex rules of the taxation of residuary estates.
Following death, the deceased’s will sets out how the estate of the deceased is to be distributed among the various beneficiaries. Once the liabilities of the estate have been satisfied (repaid) and the various legacies paid out.
Interests in residue
The residuary beneficiaries (i.e. those beneficiaries who are to share in the residue) may each be entitled to different interests in that residue. More specifically, such interests may comprise a limited interest; an absolute interest; or a discretionary interest.
Limited interest
A beneficiary has a limited interest in the whole or part of the residue of an estate during any period if he
