If the deceased’s legal personal representatives are
entitled to claim a sum of money as of right (
IHTM17052) it forms part of the death
estate (
IHTM04029). However, if under the terms
of an arrangement to which IHTA84/S152 applies (usually personal
pensions and retirement annuity contracts) an annuity becomes
payable on the death to the widow, widower, surviving civil partner
(
IHTM11032) or dependant and the
deceased had the option of taking a lump sum instead, that lump sum
is not treated as part of the death estate.
If there is an option to have the lump sum paid to persons
other than the personal representatives (
IHTM05012), IHTA84/S152 does not apply.
If the parties claim that IHTA84/S152 applies to a pension
scheme the matter should be referred to the pension specialist in
TG at IHT Edinburgh.
