IHT 205 (2011)
in Deaths, funerals & probate
8 replies 127 views
Rather late but I’m starting to complete a IHT 205 (2011) for someone that passed away in Sept 2020, they had a terminal illness and took there small private pension as a tax free lump sum 2 months before they died, I’m looking at question 8 about disposing of pensions and confusing myself as I’m presuming the monies from the pension will be included in cash assets held?
Also I’m hoping I can do an IHT205 as they were tenants in common and the deceased left his share of the house to his son as a Life Interest and every thing else to his wife so she will continue to live in the house.
There won’t be any IHT to pay and am I reading it correctly that you only have to fit one of the criteria below for it to be an excepted estate.
If the person died on or before 31 December 2021
An estate is usually an excepted estate if any of the following apply:
- its value is below the Inheritance Tax threshold at the time the person died
- the deceased left everything to a surviving spouse or civil partner living in the UK or to a qualifying charity and the estate is worth less than £1 million (search the charity register for registered UK charities)
- the deceased was living permanently outside the UK (a ‘foreign domiciliary’) when they died and the value of their UK assets is under £150,000
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You also do not need to file a IHT return so a IHT205 is not required. It is not even necessary to update the land registry at this stage.