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Trusts and Inheritance Tax

Post death variations in cross-border estates

Produced by Tolley in association with Richard Frimston at Russell-Cooke Solicitors
  • 23 Mar 2022 10:33

The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Richard Frimston at Russell-Cooke Solicitors provides comprehensive and up to date tax information covering:

  • Post death variations in cross-border estates
  • Loss relief claims
  • Variations
  • USA
  • France
  • Disclaimers
  • USA
  • France
  • Claims under the I(PFD)A 1975
  • Discretionary Will Trust Distributions
    • More...

Post death variations in cross-border estates

In the UK, inheritance tax on death may be altered or deferred in a number of ways:

  1. •

    relief where land or shares have been sold at a loss, since death

  2. •

    deeds of variation

  3. •

    disclaimers

  4. •

    family provision claims under the I(PFD)A 1975

  5. •

    distributions within two years of death from a Will trust

In a cross-border context variations are generally mere tax fictions and are very unlikely to be recognised in another jurisdiction.

Common law jurisdictions may have more scope for tax planning since assets usually vest in personal representatives rather than direct in beneficiaries. The USA and France are cited below as particular examples, but local advice is always necessary.

Disclaimers are certainly a more universally understood concept. Any relevant time limits are certain to be different and are very easy to miss.

Loss relief claims

Where qualifying conditions apply, a claim can be made to reduce inheritance tax payable when the value of land or shares in an estate has reduced after the date of death. See the Sale of land from deceased estate and Sale of shares from deceased estate guidance notes for the conditions for loss relief claims.

It is unlikely that a claim under IHTA 1984, ss 179 or 191 will have any effect on the value of a particular asset for the purposes of calculating any foreign tax liability on that asset.

US Federal estate tax is generally levied on assets at their value on the date of death, but when this has fallen in value

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