Commentary

I4.142A Liabilities which are not discharged out of the estate

IHT, trusts and estates

I4.142A Liabilities which are not discharged out of the estate

I4.142A Liabilities which are not discharged out of the estate

In relation to the estate of any person dying on or after 17 July 2013, IHTA 1984, s 175A(1) provides that a liability may be taken into account to the extent that it is discharged on or after the death out of the estate, or from excluded property owned by the deceased person immediately before his death, and is not otherwise prevented under any provision of IHTA 1984 from being taken into account. For further information on the deduction of liabilities generally see I4.141 and I3.231.

This is worded in positive terms, but has the negative purpose of disallowing as a deduction liabilities not discharged out of the deceased's estate. However, because it is positively worded, there is a question whether it cancels out the disallowance of liabilities to persons possessing assets derived from the deceased, or in connection with life insurance, which are contained in FA 1986, s 103 (see I4.147 and I4.151–I4.154), and not in IHTA 1984. FA 1986 is construed as one with IHTA 19841, but that is a provision about the construction of FA 1986, and it is not clear whether references in IHTA 1984 to itself include references to FA 1986. Such property will often form part of a deceased person's estate in the ordinary sense of the term, and be property from which liabilities may properly be discharged under the ordinary law of the administration of estates, but it is treated for IHT purposes as

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