I am dealing with a matter whereby the deceased “W” and her late husband “H”, settled the property in which they lived into the names of themselves and that of their daughter as the Trustees of an IIP trust in 2001. They continued to live in the property until their respective deaths. The trust made provision allowing them to do so.
W has now died. When H died in 2009, the property was worth approximately £500,000. The property is now worth £990,000.
At the time H died the daughter dealt with his estate and the existence of the trust, although disclosed in the IHT forms, showed a value of the property at the date of his death as “nil”. I believe this should have been £250,000.
The property still remains in the three Trustees’ names.
So far as disclosing the property in the Inheritance Tax forms for W’s estate, it seems to me that the entire value of the property needs to be included, presumably in the IHT403.
H’s Will contained a NRB discretionary trust. However, because the property had already been settled and he owned very little else, the estate was actually insolvent, so there was nothing to transfer into the discretionary trust.
As a result, presumably this estate would ordinarily be entitled to his transferrable Nil Rate Band in addition to the deceased’s own NRB, save for the fact that his NRB will have been eroded by the GWROB.
I would also imagine that estate does not qualify for RNRB, as the deceased did not own a property as at the date she passed away, it was held in the trust and the same would apply to H’s estate, so neither RNRB is available.
This may be a silly question, but how do I actually check to see if the deceased was paying POAT?
Any guidance would be greatly appreciated.
Harold Bell Infields & Co