Any FOTRA gilts (
IHTM04291) that form part of an
unadministered estate (
IHTM22011) can qualify as excluded
property on a transfer made by a person (
IHTM04052) entitled to the whole or
part of the unadministered estate. The exclusion will depend on the
ordinary residence (
IHTM04295) (and domicile (
IHTM04296)) of the person entitled to
the interest in the estate.
Example
S dies leaving his residuary estate to B and C equally.
Before the estate has been administered, C - who is domiciled and
ordinarily resident abroad - assigns his interest in the estate to
the trustees of a discretionary trust. At the time of the
assignment the estate includes holdings of exempt securities and
some other UK assets.
C’s assignment constitutes a transfer of value that is
not a PET (
IHTM04057). For the purpose of
determining the value transferred, (
IHTM04054) C’s interest in FOTRA
gilts included in S’s estate is excluded property (
IHTM04251) and the securities are
therefore left out of C’s estate. The value is ascertained by
reference to the remaining assets.
