Shares between trading and settlement date

I have an estate where a trade was made on 19th April and due to a long fail (I believe that is the correct term) the settlement date was 5th July. My client died after 19th April and before 5th July. I accept those shares form part of the estate but does the outstanding monies that were not paid until the settlement date become a debt due from my client’s estate for IHT purposes?

If the liability arises from a contract entered into before the client’s death, as is stated to be the case here, the debt is allowable for IHT purposes.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Thank you.

Kind regards,

Claire Flood.