Commentary

I4.149C Liability to pay an annuity

IHT, trusts and estates

I4.149C Liability to pay an annuity

I4.149C Liability to pay an annuity

For an annuity which the deceased was under a personal obligation to pay to be deductible, the obligation must have been incurred for full consideration. This is possible where it arises from financial provision on divorce, but not, for example, where the consideration was marriage or it is pursuant to a moral obligation to, eg, a former partner (in the personal rather than business sense)1.

A deductible terminable annuity which was merely the personal responsibility of the deceased is a simple debt, and the value is calculated as described below.

In a case where it can

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