IHTM04033 - Structure of the charge: how meaning of estate is restricted

Property is not part of the transferor’s estate where

• it is uncertain which of two (or more) persons survived the other(s), ( IHTM12191) IHTA84/S4 (2). Generally, the younger person is deemed to survived the elder, so the effect is that the estate immediately before death of the younger person(s) does not include property that accrues as a consequence of the deemed earlier death of the elder person. This rule is subject to exceptions in Scots law under the Succession (Scotland) Act 1964 ( IHTM12193),
• the transferor is entitled to property as a corporation sole, IHTA84/S271. Such property is not property to which that person is beneficially entitled (except for the purposes of IHTA84/S59). An example is property held by a bishop by virtue of his office. (IHTA84/S59 defines qualifying interest in possession for the purposes of settlements without interests in possession.)
• a person acquires a reversionary interest ( IHTM16000) at a time when they had a prior interest in the settled property, IHTA84/S55 (1). The reversionary interest is not part of the estate, although there may be a charge on the lifetime transfer ( IHTM04282)
• the legislation specifically excludes ( IHTM04251) the property from charge.