TSEM7452 - Deceased persons: beneficiaries of estates - introduction

The word `beneficiary' where used in this guidance, means a person who has benefited from the estate of a deceased person.

In everyday speech people may talk about receiving a legacy from the estate of a deceased person. This is not always the correct legal term. (TSEM7490 explains the meaning of the term `legacy' and the tax rules that apply to legacies).

TSEM7602 explains the meaning of the term residue. Beneficiaries may have one of three different types of interest in the residue of the estate of a deceased person.

Absolute interest: the beneficiary is entitled both to the capital and to the income of the whole or part of the residue of the estate.

Limited interest: the beneficiary is entitled to receive income but not capital from the residue of the estate.

Discretionary interest: the beneficiary receives income from the estate only if the personal representatives exercise a discretion in his favour.