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).