Summary Wills and Administration of Estate

Wills & Administration of Estates


Inheritance Tax Prep & Workshop Task

Details of assets:

 House worth £400,000
 3,300 shares in BT plc (a quoted company) worth £10,000
 600 shares (a 40% holding) in Mi-part Ltd, an unquoted company; the shares are valued at
£100,000
 A life assurance policy with Equilaw Life Co. (not written in trust) worth £75,000 following
Victoria’s death
 A life assurance policy with Friends Provident Co., the benefit of which was transferred to
Victoria’s nephews, Peter and Michael, in March 2006 when it was worth £2,000. The policy
will pay out £50,000 on Victoria’s death
 A bank account with a balance of £48,000



Step 1: Identify the transfer of value

Loss to Victoria’s estate arising from death.



Step 2: Find the value transferred

House: 400,000

Quoted Shares: 10,000

Unquoted Shares: 100,000 (Business property relief)

Life Assurance Policy Equilaw: 75,000

Life Assurance Friends: 50,000 (not beneficiary)

Bank account: 48,000

Action for children: 10,000 (Do not include charity because it is part of estate)

Liabilities/Expenses: 3000



1. What is the value transferred in respect of Victoria’s death estate? Total: 633,000

Step 3: Apply any exemptions and reliefs

Business property relief: 100,000 is free

Charity: 10,000

Total: 633,000-100,000-10,000= 530,000