IHTM10824 - Lifetime transfers: gifts with reservation (GWRs)

The accountability depends on whether the gift is treated as a potentially exempt transfer (PET) (IHTM04057), and an IHT100a should be completed; or as part of the death estate, when an IHT403 should be completed.

The time limit for delivering the account is 12 months from the end of the month in which the transferor’s death occurs. There is no obligation to account for exempt transfers.

Treated as PET

The transferee is normally accountable, IHTA84/S216 (1)(bb).

Treated as part of the death estate

The legislation does not make transferees expressly accountable but they will normally be accountable under IHTA84/S216 (1)(bc).

For deaths on or after 9 March 1999, the deceased’s personal representatives (IHTM05012) must include full details of any gifts made by the deceased within 7 years of death with the IHT 400, FA99/S105 (1). You should approach the transferees if a formal account IHT100a is required.