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When an estate contains assets that a beneficiary wishes to keep rather than convert to cash, the executor can appropriate those assets in satisfaction of the beneficiary's entitlement. A deed of appropriation is the document that records this. It is a flexible and tax-efficient tool — particularly useful for investment portfolios, shareholdings, and property.
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Section 41 of the Administration of Estates Act 1925 gives every personal representative the power to appropriate any part of the estate in its actual condition or state of investment as it exists at the time of appropriation, in or towards satisfaction of any legacy or any other interest or share in the estate.
This power exists by statute even if the will is silent on the point. However, many professionally-drafted wills also include an express power of appropriation, which may be broader than the statutory power (e.g., waiving the consent requirement).
A deed of appropriation is appropriate when:
For property transfers, an appropriation is often documented alongside or as part of the AS1 assent process. See our assenting property to a beneficiary guide for the Land Registry registration process.
Under the statutory power in s.41, the consent of the beneficiary is required before appropriation. Consent must be in writing and obtained before the deed is executed. The consent confirms that the beneficiary agrees to receive the specific asset in satisfaction of their entitlement.
If the will expressly waives the consent requirement, no consent is needed — the executor can appropriate unilaterally. However, in practice it is advisable to document the beneficiary's agreement regardless, to avoid future disputes.
If a beneficiary is a minor or lacks mental capacity, a parent, guardian, or deputy may need to give consent on their behalf. See our bare trust for minor beneficiaries guide.
The appropriation must be at the value of the asset at the date of appropriation — not probate value and not the sale price. For shares, this is the market price on the day the deed is executed. For property, an independent valuation is needed.
This is important because the beneficiary's entitlement (their share of the estate) is valued in money terms. The appropriation satisfies that money entitlement with an asset worth the same amount. If the asset has risen in value since probate, the beneficiary receives fewer units of the asset (or pays the difference to the estate); if it has fallen, they receive more.
An appropriation to a beneficiary is treated as a "no gain, no loss" disposal for CGT purposes — the executor does not trigger a CGT charge on the appropriation itself. The beneficiary acquires the asset at its probate value (not the appropriation date value).
When the beneficiary later sells the asset, they will pay CGT on any gain above probate value. They can use their own Annual Exempt Amount and CGT rates. For the full CGT picture on inherited assets, see our CGT on inherited assets guide.
Note: if an executor appropriates a property to a beneficiary who then lives in it as their main residence, Private Residence Relief may shelter future gains when they sell — this can be a significant CGT planning benefit.
A deed of appropriation typically includes:
Whilst the deed does not need to be filed with the court or a registry (unlike a Land Registry application), it should be retained with the estate papers and provided to the beneficiary for their records.
For investment portfolios held with a platform (e.g., Hargreaves Lansdown, AJ Bell), the process is:
For certificated shares, a stock transfer form is also needed. For the process of collecting investment assets during administration, see our collecting assets after probate guide.
For the full post-grant process, see our what to do after grant of probate guide, estate administration checklist, complete UK probate guide 2026, and applying for probate guide. For distributing the estate, see our distributing the residuary estate guide. For estate accounts, see our estate accounts guide. Farra can help — get started here.
Distribution follows a strict order: specific legacies, pecuniary legacies, then residue. The executor's year is 12 months from death. Obtain receipts from all beneficiaries. UK.
The most efficient order for collecting estate assets after probate: bank accounts first, then investments, then property. Use the Death Notification Service. UK executor guide.
CGT base cost for inherited assets is the probate value. Understand the 36-month main residence relief, the 60-day reporting rule for property, and CGT rates. UK 2026.
To transfer registered property to a beneficiary, the executor uses form AS1 (Assent of registered land). No SDLT is due on a straightforward assent. UK executor guide.
Estate accounts are a formal summary of all assets, debts, and residue — prepared before distribution and presented to beneficiaries for approval. UK executor guide.
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