I8.227 Liabilities

I8.227 Liabilities

Liabilities are generally deductible from the value of an estate in full1, but there are exceptions to this rule. The most general one is that a liability not imposed by law is only deductible to the extent that it was incurred for consideration in money or money's worth2. This may require a valuation of a liability when it was incurred in order to determine whether it was incurred for full consideration, and can also require valuation of the consideration itself.

Future liabilities

A future liability must be discounted3, where appropriate, in order that its value may be ascertained at the date of death or other event which gives rise to an IHT

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial