Key Post What happens an ARF when a person dies
- Thread starter Brendan Burgess
- Start date
Is this required by legislation or custom and practice?
What if the recipients want to keep an ARF asset intact? (for various reasons such as emotional connection to property or simply want to avoid a forced sale)
Whilst a spouse can “ step into the shoes of the deceased” and continue with the ARF, once children subsequently inherit the ARF has to be liquidated and distributed as part of the estate.
Brendan Burgess
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Hi Conan
1) Liquidate the ARF - the property becomes the property of the executor?
2) Distribute the property to the daughter.
Would that work?
Or does the Executor have to sell the property? In which case,they could sell it to the daughter.
Brendan
1) Liquidate the ARF - the property becomes the property of the executor?
2) Distribute the property to the daughter.
Would that work?
Or does the Executor have to sell the property? In which case,they could sell it to the daughter.
Brendan
An ARF is managed by a Qualifying Fund Manager (QFM). They are responsible for ensuring that the ARF is fully compliant.
My understanding is that on death (and where the ARF is not transferring to a spouse) , the QFM is required to liquidate the residual fund. Under the “arms length” rules they cannot sell any property within the ARF to a connected party (such as a child).
My understanding is that on death (and where the ARF is not transferring to a spouse) , the QFM is required to liquidate the residual fund. Under the “arms length” rules they cannot sell any property within the ARF to a connected party (such as a child).