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Preparatory work

Before completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the Obtaining the grant of representation guidance note and other notes in that sub-topic. The key elements of the initial investigatory work are:

1. •

   understand the terms of the Will, or the intestacy provisions that apply and identify the beneficiaries (ie their relationship to the deceased)

2. •

   identify the assets and liabilities that make up the chargeable estate on death. See the IHT charge on death guidance note

3. •

   identify gifts made in the seven years before death, and gifts with reservation made at any time

4. •

   obtain valuations of all the assets, liabilities and gifts mentioned above

As the information and valuations are collected, it is advisable to record them on one working schedule such as an Excel spreadsheet. The Proforma ― estate at death