IHTM04044 - Transfers on death:
what is the value transferred on death?
The starting point is the value of all the property that makes
up the person’s estate (
IHTM04029) less the value of deductible
liabilities (
IHTM28010). The rules about the
valuation of property (
IHTM09701) and the deduction of
liabilities (
IHTM28010) are covered in other
sections, but there are some special rules that effect the value of
the estate on death. These are that
- in valuing property in the death estate,
the estate has to be considered in it’s entirety, so items of
property may be taken together (
IHTM04045) even though they may be held
under separate titles,
- although the deemed transfer takes place
immediately before the death, certain changes in value caused by
the death (
IHTM04046) are taken into account,
- dividing the property into natural lots; (
IHTM09701) or valuing two or more items
of property as a single unit, (
IHTM09701) may produce a higher
value,
- the value of certain categories of
property is left out of the account, (
IHTM04331)
- there are special rules for deducting
certain liabilities on death such as funeral expenses (
IHTM10371) and expenses incurred abroad
(
IHTM27050).
