CG31210 - Death and Personal Representatives: Legatees and their treatment: Disposals of legatees interest: Legatees: gifts interest in estate before assets vest
A legatee may decide they wish to give the assets they are due to receive from an estate to some other person. This is often achieved by executing a deed of variation, see CG31600+. Occasionally the legatee simply gifts his or her interest in the estate to the other person. Such a gift is a variation of the devolution of the estate.
If all other necessary conditions are satisfied an election under TCGA92/S62 (7) can be made. This will result in the gift being treated as retrospective to the date of death for Capital Gains Tax purposes, see CG31630+.
If a valid election cannot be made or for any other reason is not made and the gift is made whilst the assets remain vested in the personal representatives the treatment described in CG32000+ will apply.