IHTM06044 – Monitoring the excepted estate rules: automatic discharge for trustees

The automatic discharge ( IHTM06043) applies to trustees as well as to personal representatives ( IHTM05012). But this does mean that trustees need to know when the grant was issued and whether or not we have issued a notice within the prescribed period ( IHTM06042) requiring further information from the personal representatives.

Trustees should contact the personal representatives to find out when the grant has issued and whether we have requested further information.

If we have not requested an account within the prescribed period, the trustees are discharged from any claim to tax.

The automatic discharge operates in the same way as formal clearance ( IHTM40010). In other words, once the prescribed period has expired, the trustees are entitled to rely on that clearance should, for example, an additional asset come to light in the Free Estate which gives rise to a tax liability. You should refer any case where this occurs to Compliance Group.

Where we have requested an account from the personal representatives, the automatic clearance does not apply. But as the trustees have not delivered an account, you cannot issue formal clearance. Where we have requested an account, we have recommended to trustees that they write to us for confirmation that we accept that the estate qualifies as an excepted estate. Where this applies, you can provide the appropriate confirmation. If we have established that the estate does not qualify as an excepted estate, the case will be handled in Compliance Group.