1.7 Wills - Non-Probate Transfers

Question 1

What assets are part of IHT estate?

Answer 1

Joint owned property => Passes by right of survivorship

• Houses
• Bank accounts

Statutory nominations

• Asset holder can nominate TP receiver of asset on death
• Asset < £5,000 (Trustee Savings Bank/Friendly Societies and Industrial and Provident Societies)

Lifetime gifts made in contemplation of death
- Donor dies => Gift immediately passes to Donee (NOT part of estate)

Life interest - Trust property

Lifetime gift => Benefit reserved by T

Question 2

What assets are not part of IHT estate?

Answer 2

Life policy in trust

• T’s own life
• In favour of named Bens (spouse/children)

Private pension scheme benefits

• Paid on employee’s death (in service)
• Payable at discretion of scheme trustees
• Employee on determine recipient