IHTM20022 - Life Policies: investigating form IHT410: if the answer to Question 1 is Yes

The name of the insurance company, the policy number and the amount paid under the policy should be given for each policy involved, at box 2. The policy will form part of the death estate and the proceeds will be payable to the legal personal representatives. Unless it is exempt, (for example. because it is left to the surviving spouse or civil partner (IHTM11032) by Will), Inheritance Tax is payable on the claim value (IHTM20084) at the date of death.

Mortgage protection policies (IHTM20088) on properties owned solely by the deceased should be included here. For such policies on jointly-owned properties, see IHTM20304.

If no value has been returned for the policy you should ask the taxpayer or agent for a letter from the insurance company, stating the claim value that would have been paid if they had been notified of the death on the date of death itself.

If a value has been given for the policy you should accept the value offered unless:

• There is doubt about whether it is the claim value - you should ask the taxpayer for a letter from the insurance company stating the claim value that would have been paid if they had been notified of the death on the date of death itself.
• It is a round figure - you should ask if all bonuses have been included, and if not ask for full details.

There is further guidance at IHTM20211.