Joan died leaving her estate to her three sons equally. The estate comprised of:
- house worth €900,000
- shares worth €100,000
- cash worth €260,000.
The net value of the estate is €1,260,000. That is €420,000 each. The three sons agreed that:
- each of them should end up with €420,000
- the house should go to Tom, one of the sons
- Tom should pay the personal representatives €480,000 (€900,000 less the €420,000 Tom is entitled to) to ensure that the other two sons each ended up with €420,000.
The personal representatives assent in writing to Tom getting the house.
Tom is entitled to one-third of the house under the will but he is getting the whole house.
As there is no deemed gift, Tom pays Stamp Duty on €480,000.
The executors distribute the shares (€100,000), the cash (€260,000) and the €480,000 paid by Tom (total value €840,000) to the other two sons of the deceased.