Refunds of contributions are an asset of the estate (
IHTM04029) and may be included in the
IHT400 (
IHTM10021) or, if paid in a lump sum,
at Box15 on the form IHT409 (IHTM10033) and carried forward to 56 (
IHTM10063) in the IHT400.
Protected rights may be chargeable to inheritance tax. The
claims on them are considered in detail at (
IHTM17131).
No claim to IHT arises on any ex gratia payments made by the
scheme administrators. These are payments made by the scheme
administrators without any legal obligation to do so. No claim to
IHT arises because on the member/employee’s death there is no
‘right’ to claim any payment from the Scheme
Administrators - the deceased was not beneficially entitled (
IHTM04031) to the payment.
