IHT - Deceased left no will |
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| This is one of a number of explanatory articles, part of a set copied under licence from H M Revenue & Customs website: |
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- Introduction – Is Inheritance Tax due?
- Calculating Inheritance Tax;
- Valuing assets;
- Responsibilities of personal representatives;
- Business relief and businesses;
- Discretionary trusts;
- Deceased left no will;
- Pensions;
- Agricultural relief;
- Deceased's liabilities;
- Foreign aspects;
- Joint property;
- Penalties;
- Settled property;
- Woodlands;
- Probate;
- Alter Inheritance tax;
- Gifts;
- Excepted estates;
- Paying IHT;
- Thresholds and Interest.
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| Introduction |
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| This guide is designed to help our customers to obtain a grant of representation, complete an account of the deceased's estate, and pay any inheritance tax (IHT) which may be due. |
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| It also gives advice about lifetime gifts and the taxation of discretionary trusts. |
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| The proposals in the Finance Bill 2006 affect the meaning in this article regarding: |
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- Gifts into certain kinds of trusts;
- The tax treatment of trusts, known as interest in possession trusts, in which the beneficiaries have a right to benefits;
- The ending of an interest in possession during a beneficiary's lifetime;
- The treatment of funds in alternatively secured pensions on death.
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| This article will be updated as necessary when the Finance Bill is enacted. |
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| What is intestacy? |
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| When a person dies without leaving a will, or the will is invalid, we describe them as dying intestate. Intestacy is simply an estate where the person died intestate. |
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| How might the will be invalid? |
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| A will must be: |
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- In writing, unless it is a privileged will;
- Signed by the testator or testatrix;
- Witnessed by at least two witnesses who need to be present when the testator signs the will.
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| If the will does not have one of these elements it is likely to be invalid. |
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| If there is intestacy, who does the estate pass to? |
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| There are legal rules which determine how an estate passes under an intestacy. If you want to know how the estate you are dealing with will pass under the rules of intestacy, you should contact us directly. |
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| Briefly, who the estate passes to depends on where you live (England and Wales / Scotland / Northern Ireland), whether the deceased has a surviving civil partner, and whether they have any children. It will be divided up accordingly. |
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