IHTM09031 - Investigating accounts: what to consider when looking at information in an account

There is separate guidance on how to investigate specific assets ( IHTM09702) and liabilities ( IHTM28000). There is also guidance on dealing with exemptions ( IHTM11000), agricultural relief ( IHTM24000) and business relief ( IHTM25131). The following are the sort of general considerations you should have when looking at the account as a whole

• who are the executors – are they likely to have had knowledge about the deceased’s affairs or will they have had to rely on others or the deceased’s papers to complete the account?
• when was the account taken out? – if the deceased’s affairs appear to have been complicated an account filed shortly after death may indicate that the taxpayers did not make full enquiries into the estate at that time
• are there any estimated values? ( IHTM09035)
• is the estate exempt or partly exempt? ( IHTM09036)
• what do the facts presented by the taxpayers tell you about transferor/deceased or the estate as a whole – is the estate consistent with what you know about the deceased or the picture that you have built up ( IHTM09032) about the deceased or transferor’s lifestyle?
• does the whole picture (including any will or codicil) suggest the likelihood of assets, settled property or gifts not disclosed?
• is there, or should there be, a relationship either between assets or between the debts and assets which suggests the possibility of an omission or undervaluation?
• do any of the transactions or items shown indicate a lifetime transfer?
• are there any signs of an avoidance scheme ( IHTM09151) or unusual transactions that may have resulted in a loss to the estate or a reduction of tax?

You should use this information when deciding how detailed the enquiry should be and whether you should ask for original or photocopies of original documentation.