Brief history
Elderly couple own their property as tenants in common 50% each. They have drawn a will trust incorporating life interest to the surviving spouse. On death of first spouse his half share of the property goes in a trust for the benefits of the adult children who will be the trustees. The trust ends on the death of both spouses. I understand this is also known as immediate post death interests trusts. I am stuck on some the questions below filling IHT form 205 and would like some help pl. The house is worth about £300,000 and the assets should be below inheritance tax. Does this type of trust need to be registered on death of first spouse?
About the estate
4 Did the deceased have the right to receive the benefit from any assets held in a trust that were treated as part of their estate for Inheritance Tax purposes? No Yes If you answered ‘Yes’, and the deceased was entitled to benefit from a single trust, and the value of the assets in that trust, treated as part of their estate, was less than or equal to £150,000 include the value of the trust assets in box 9.3. But if the value was more than £150,000, or there was more than one trust, stop filling in this form. You will need to fill in form IHT400 instead. ] am not sure what is the right answer to this question.
Deceased’s assets at the date of death
9.3 Assets held in trust for the benefit of the deceased Box 9.3 £ during their lifetime. Please tell us what assets were in the trust, the name of the person who set up the trust and the date it was set up Nominated Assets outside of the UK Gross value of assets for which a grant is not required (add together the figures in boxes 9.1 to 9.5)As the trust came into effect on death of first spouse do I need to put the half share of the property as assets held in trust? Name of the person who set up the trust will be the elderly couple. I have read IHT form 206 and am still clueless.
Thanks in anticipation for any help.
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch