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IHT205 question re Prudential Annuity - thanks in advance for assistance

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CDW58
CDW58 Posts: 4 Newbie
Eighth Anniversary First Post
edited 17 June 2020 at 10:24PM in Deaths, funerals & probate
My father died in April 2020. His estate was simple in that he was in a nursing home since property was sold in 2016. Any stocks and shares were sold in 2016 so he just had cash in banks and building societies totalling £290,000 and his state and BP pension stopped paying out on death.  He had a Prudential annuity (transferred from Equitable Life in 2008) which paid around £1,500 per annum gross and this was paid into his bank account after tax so would get a P60 each year to show this. So am filling in form IHT205 which is for estates under £325,000   
However am unclear how to answer point 6:  Did the Deceased pay premiums on any life insurance policies that were not for their own benefit  or did not pay out to the estate, and did they buy an annuity at any time? ignore any policies paid out to a surviving spouse or partner = there is only a choice of Yes or No and it says if Yes top filling in this form. you will need to fill in form IHT400 instead.  As the money entered his account already taxed do I need to declare yes here or am I misreading the question and should it apply to the next question 7 Did the deceased have any kind of pension arrangement other than the State Pension to which have already said Yes as he had the BP pension.
Hope someone can answer this

Thank you

Comments

  • xylophone
    xylophone Posts: 45,608 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 18 June 2020 at 11:46AM
    Did the Deceased pay premiums on any life insurance policies that were not for their own benefit  or did not pay out to the estate, and did they buy an annuity at any time?

    From the HMRC notes 

     Notes to help you fill in form IHT205(2011) These notes only apply when the deceased died on or after 6 April 2011 and you are filling in form IHT205(2011) ‘Return of estate information’.

     In any other case, for example, where the policy was put into trust within 7 years of the death, or if the deceased both paid premiums on a life insurance policy that was not for their own benefit or paid out to the estate and they bought an annuity at any time, you must answer ‘Yes’ to question 6 and stop filling in form IHT205(2011) now - you will need to fill in form IHT400 instead.

    Note  "both"  "and" - this does not appear to apply to your father's case? 

  • CDW58
    CDW58 Posts: 4 Newbie
    Eighth Anniversary First Post
    Thank you - yes looking at this again the annuity only seems relevant if my father paid premiums on a life insurance policy that was not for his own benefit or paid out to the estate which was not the case.  I was confused as to whether the purchasing of an annuity was linked to that question but as it is not a separate question it seems it is.  



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