IHTM20025 - Life Policies: investigating form IHT410: if the answer to Question 7 is Yes

In this instance payments under a purchased life annuity will continue to be made to the deceased’s estate for a fixed period after death. The right to receive those payments will be an asset of the estate and the value of that right should be included in the form IHT400.

The following information should be provided:

• the name of the company that sold the policy,
• how often the payments were made,
• details of any increase in the payments during the remaining guaranteed period, and
• the date of the final guaranteed payment,
• the taxpayer’s returned value of the right to receive the remainder of the payments.

The gross annual amount payable under the annuity will be shown at box 9.

When all this information is available, refer the matter to the Actuarial Team.

If there is any reference to ‘capital redemptions’, or to Foundation Insurance (Capital Redemptions) Ltd, see IHTM20061.

See also IHTM20634.