Commentary

I4.446 The abatement where a claim is settled out of a beneficiary's own resources

IHT, trusts and estates

I4.446 The abatement where a claim is settled out of a beneficiary's own resources

I4.446 The abatement where a claim is settled out of a beneficiary's own resources

If IHTA 1984, s 29A applies (see I4.445), the reduction of the exempt part of the estate is worked out as follows.

A calculation is made of the amount by which the value of the exempt beneficiary's estate immediately after the disposition in settlement of the claim is less than it would be but for the disposition1. This wording follows the definition of transfer of value in IHTA 1984, s 3(1) (see I3.111–I3.114). As a person's estate is the aggregate of all the property to which he is beneficially entitled, this provision can have no application to a 'beneficiary' for the purposes of s 29A (see above) who is a trustee, such as the trustee of a charitable trust or a maintenance fund.

In calculating this diminution in value of the beneficiary's estate no deduction is made

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