IHTM17052 - Payments forming part of death estate: deceased's estate has a right to claim the death benefits

Death benefits ( IHTM17030) payable to the deceased’s estate or personal representatives ( IHTM05012) as of right at the date of death form part of the deceased’s estate ( IHTM04029) for IHT purposes. There is an exception to this under IHTA84/S152 where an annuity becomes payable to a dependant of the deceased but the deceased had the option ( IHTM17054) of taking a lump sum instead.

Where the death benefit forms part of the estate the taxpayer should state on page 2 of the form IHT409 ( IHTM10033)

• the name of the pension scheme or title of the personal pension policy
• whether the scheme/policy is approved ( IHTM17020) for income tax purposes
• the amount of the lump sum payment
• the name of the person who received the lump sum payment

and include the amount of the lump sum in box 15 and box 56 of the IHT400 ( IHTM10021).