I3.211 Meaning of estate generally

IHT, trusts and estates

I3.211 Meaning of estate generally

Division I3.2     Value transferred by a transfer of value

For updates affecting this Division please see Part I0 Updates

The IHT 'estate'

I3.211 Meaning of estate generally

The question of what property forms part of a person's estate is important in relation to lifetime transfers for a number of reasons.


    •     Firstly, a reduction in the value of the estate when property leaves it may give rise to a charge to IHT


    •     Secondly, if property leaves the estate and other property comes in to replace it, the effect may be to prevent a charge to IHT accordingly a direction that the incoming property should not form part of the estate, such as there is for reversionary interests in the circumstances covered by IHTA 1984, s 55(1), I5.713, serves to create an IHT charge where there would not otherwise be one


    •     Thirdly, if the property forms part of someone's estate it may fall foul of the related property rules by reason of his spouse or civil partner having similar property1 — see I8.241.

As the value transferred by a

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