IHT205 - What to declare when there was a funeral plan?

chirpy1234

Hi all.
I'm trying to fill out the IHT205 form. I have a query please...I have spoken to HMRC twice and got two different answers so I'm hoping someone here has been through this and can give me the correct answer.
My dad had a funeral plan that paid out when he passed away. This covered the costs of the funeral.
Box 12.1 (funeral expenses) on the IHT205 form should be left blank (according to the IHT206 guidance notes) if this is the case
Please can someone tell me whether I have to declare the plan in box 11.5 (insurance policies) of the assets?
If I do, then doesn't that mean I'm declaring an asset, but the funeral cost nothing which seems wrong?
Any help about what to put in boxes 11.5 and 12.1 when a funeral plan has paid out for all costs would be much appreciated.
Thank you, Rob.

Keep_pedalling

A funeral plan is not the same as an insurance policy. You are basically paying upfront for your funeral and nothing is paid into the estate, so you don’t enter this in 11.5.

Some people do take out insurence policies to cover funeral expenses, and if this is the case then you add that to 11.5 and claim the funeral expenses.

badger09

chirpy1234 wrote: »

Hi all.
I'm trying to fill out the IHT205 form. I have a query please...I have spoken to HMRC twice and got two different answers so I'm hoping someone here has been through this and can give me the correct answer.
My dad had a funeral plan that paid out when he passed away. This covered the costs of the funeral.
Box 12.1 (funeral expenses) on the IHT205 form should be left blank (according to the IHT206 guidance notes) if this is the case
Please can someone tell me whether I have to declare the plan in box 11.5 (insurance policies) of the assets?
If I do, then doesn't that mean I'm declaring an asset, but the funeral cost nothing which seems wrong?
Any help about what to put in boxes 11.5 and 12.1 when a funeral plan has paid out for all costs would be much appreciated.
Thank you, Rob.

The payout from the prepaid Funeral Plan does not form part of the Estate for IHT purposes.

see note 6
https://www.moneysavingexpert.com/family/prepaid-funeral-plans/

I'm sure its covered somewhere in the official guidance but don't have time to look right now.