Where the member transfers their death benefits (
IHTM17030) to a trust a claim to IHT
arises on the lifetime transfer (
IHTM14421) under IHTA84/S3 (1). All
cases where the member transfers their death benefits to a trust
should be referred to TG at IHT Edinburgh in the first instance.
The loss to the estate (
IHTM04054) on a transfer is calculated
by the pension specialist in TG in conjunction with the BAO. If the
transferor is in good health with normal life expectancy etc then
it is likely they will survive to take their retirement benefits (
IHTM17030) at some later date at which
time the death benefits will lapse. In those circumstances, at the
date of transfer the death benefits have a nominal value only.
Generally, if the transfer is made more than 2 years before the
death then, unless there is specific evidence to the contrary, TG
will assume the transferor was in normal health at the time and no
further investigation will be necessary.
Where the member has assigned the death benefits within 2
years of their death this should be reflected in the answer to
question 16 on the IHT409. If this information has not been given
on the IHT409 but comes to light in correspondence you should refer
the case to TG at IHT Edinburgh.
