Commentary

I4.141 Deduction of liabilities from the death estate

IHT, trusts and estates

I4.141 Deduction of liabilities from the death estate

Deductions from the death estate

I4.141 Deduction of liabilities from the death estate

The general rule is that, in determining the value of a person's estate, his liabilities, with the exception of those imposed by law, are only deductible to the extent that they were incurred by him for consideration in money or money's worth1.

There is also the obvious point that to be deductible they must be the subject of a legal obligation to pay them.

In Robertson v HMRC2, a man had paid £26,000 to his ex-wife as compensation in advance for a reduction in maintenance payments.

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