General procedure: restriction of exemption where the beneficiary settles a claim against the deceased’s estate from their own resources (England and Wales)
There is special provision restricting the exemption when the beneficiary settles a claim (IHTM11025) against the deceased’s estate otherwise than out of the assets of the estate.
Under Richard’s Will the whole estate passes to his surviving spouse, Harriet.
Julia (who is Richard’s former spouse) makes a claim against the estate for provision out of it.
Harriet settles the claim against Richard’s estate out of her own resources.
In this situation, IHTA84/S29A restricts the exemption to the overall net benefit taken by the spouse. IHTA84/S29A applies to deaths on or after 27 July 1989.
The application of IHTA84/S29A is not limited to the spouse or civil partner (IHTM11032) exemption. It also applies to
- charity exemption (IHTM11101) (IHTA84/S23)
- transfers to political parties (IHTM11191) (IHTA84/S24)
- transfers to housing associations (IHTM11211) (IHTA/S24A)
- transfers for national purposes (IHTM11221) (IHTA81/S25)
- transfers for public benefit (IHTM11240) (IHTA84/S26)
- potentially exempt transfers of property subsequently held for national purposes (IHTM11221) etc. (IHTA84/S26A)
- maintenance funds for historic buildings (IHTM11250) and other property of national interest (IHTA84/S27); and
- employee trusts (IHTM04100) (IHTA/S28 and S28A)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)