IHTM04033 - Structure of the
charge: how meaning of estate is restricted
Property is not part of the transferor’s estate where
- it is uncertain which of two (or more)
persons survived the other(s), (
IHTM12191) IHTA84/S4 (2). Generally,
the younger person is deemed to survived the elder, so the effect
is that the estate immediately before death of the younger
person(s) does not include property that accrues as a consequence
of the deemed earlier death of the elder person. This rule is
subject to exceptions in Scots law under the Succession (Scotland)
Act 1964 (
IHTM12193),
- the transferor is entitled to property as
a corporation sole, IHTA84/S271. Such property is not property to
which that person is beneficially entitled (except for the purposes
of IHTA84/S59). An example is property held by a bishop by virtue
of his office. (IHTA84/S59 defines qualifying interest in
possession for the purposes of settlements without interests in
possession.)
- a person acquires a reversionary interest
(
IHTM16000) at a time when they had a
prior interest in the settled property, IHTA84/S55 (1). The
reversionary interest is not part of the estate, although there may
be a charge on the lifetime transfer (
IHTM04282)
- the legislation specifically excludes (
IHTM04251) the property from
charge.
