The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Before completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the Obtaining the grant of representation guidance note and other notes in that sub-topic. The key elements of the initial investigatory work are:
understand the terms of the Will, or the intestacy provisions that apply and identify the beneficiaries (ie their relationship to the deceased)
identify the assets and liabilities that make up the chargeable estate on death. See the Charge on death guidance note
identify gifts made in the seven years before death, and gifts with reservation made at any time
obtain valuations of all the assets, liabilities and gifts mentioned above
As the information and valuations are collected, it is advisable to record them on one working schedule such as an Excel spreadsheet. The Estate at death working schedule provides a suitable template.
In due course, the schedule can form the basis of the Estate Account at date of death as presented in the final Estate Accounts. As work progresses, values can be entered and amended; queries noted and resolved. The schedule can be constructed with a proforma inheritance tax calculation so that total values and the expected tax liability can be monitored.
When you are satisfied that the valuation of the estate is as complete as practically possible within the time limits, you can transfer the information to the forms to be submitted. The deadline for submitting the account is 12 months from the date of death. However, given that the time limit for paying the tax is six months from the date of death, it is advisable to aim at completing the account within that time frame.
Remember that if the estate qualifies as an excepted estate, a form IHT400 is not required. Details
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