IHTM04043 - Transfers on death: what makes up the estate on death

The second part of IHTA84/S4 (1) quantifies the deemed transfer by reference to the value of the deceased’s estate immediately before death. This brings within the death charge the whole of the deceased’s beneficial estate ( IHTM04029) as defined in IHTA84/S5 (1), including settled property in which he had an interest in possession ( IHTM16000) and any GWR ( IHTM14301) property, but excluding excluded property. (IHTM04251) It also means that general provisions governing the value of a person’s estate apply, for example, IHTA84/S5 (3) (allowance for liabilities).

The reference to the value immediately before death is subject to IHTA84/S171 which largely allows changes in value caused by the death ( IHTM04046) to be taken into account.