Valuation: interests in trusts/life assurance policies
IN THE CASE OF A PURCHASED REVERSIONARY INTEREST -
- A copy of the instrument, that is, the deed or will out of which the interest arises (the purchaser will have obtained a copy on their acquisition of the interest)
- Details of the asset(s) over which the interest exists at the date of the relevant valuation
- The names of the trustees (it is material to know whether they are professional trustees)
- The estimated rate of Inheritance Tax which would have been payable on the death of a life tenant at the date of valuation. The purchaser of the interest should have ascertained this at the time of their acquisition because it is material for the ascertainment of the market value. If they have not, they should be asked to do so.
IN THE CASE OF A PURCHASED INTEREST IN A WHOLE LIFE OR ENDOWMENT POLICY -
- A copy of the policy
- Details of bonuses declared and of any which have been withdrawn FROM THE DATE THE POLICY WAS EFFECTED up to the date of required valuation.
This information should be obtained for both actual and deemed disposals (for example rebasing to 31 March 1982).