If the payments due to your estate are in the form of a gift of
residue, you must call for the file of the earlier deceased to make
a cross reference (
IHTM22101) and to check that the value
returned is acceptable. If the value is not acceptable, you will
have to raise enquiries with the taxpayer. If there is no file,
then depending on the sums involved you will have to decide whether
to approach the taxpayer for further information about the assets
in the estate.
You must calculate an unadministered residuary estate on an
assets less liabilities basis, where
assets consist of all property held by the
personal representatives (
IHTM05012), and
liabilities mean the following, payable out of
residue,
You may need to apportion the liabilities by reference to the
extent of the beneficiary’s interest. This means that if the
beneficiary’s interest is in a half share of the
unadministered residuary estate, only half of the estate’s
liabilities may be allowed.
While you will see that the costs of administration are
deductible, a discount for delay in administration is not usually
accepted. If the taxpayer claims a discount from the net assets
value on the grounds that it will be some time before the
administration is completed, refer the claim to your manager.
