Commentary

I10.112 Transfer on death

IHT, trusts and estates

I10.112 Transfer on death

I10.112 Transfer on death

In the case of transfers on death the deceased's personal representatives are, in practice, primarily liable as they must account for and pay the IHT due (except to the extent that it may be payable by instalments (I11.511–I11.521)) in order to obtain their grant of representation1.

The persons who are concurrently liable for the IHT on the deceased's estate immediately before his death are2:

  1.  

    (a)     the deceased's personal representatives, so far as the IHT is attributable to property which either:

    1.  

      (1)     was not comprised in a settlement immediately before the death; or

    2.  

      (2)     was so comprised and was land in the UK which devolves upon or vests in the personal representatives.

  2.  

    However, their liability for tax on property subject to a reservation where the deceased was the donor is a secondary liability which only arises if the tax remains unpaid 12 months after the end of the month in which the deceased died3;

  3.  

    (b)     the trustees of a settlement, so far as the IHT is attributable to property which was comprised in that settlement immediately before the death;

  4.  

    (c)     any person in whom property to which the IHT is attributable is vested, whether beneficially or otherwise, at any time after the death or who at any such time is beneficially entitled to an interest in possession in the property, but only to the extent of the IHT attributable to that property; and

  5.  

    (d)     so far as the IHT is attributable to property which was comprised in a

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial