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
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
