General procedure: form IHT418
Form IHT418 is one of the schedules to form IHT400 (IHTM10021). It is used by the personal representatives (IHTM05012) to give details of any trust in which the deceased had an interest in possession (IHTM16061). Where the deceased became beneficially entitled to the interest in possession on or after 22 March 2006, the form will only be appropriate if the interest is an immediate post-death interest, a disabled person’s interest or a transitional serial interest. The details given are used to calculate the value of the aggregable estate before the grant and assess the Inheritance Tax (IHT) due on the free estate. The IHT418 is considered by the risk assessors as part of their review before the case is passed to the caseworker.
The trustees are primarily liable for the IHT (IHTM30091) on settled property and they should complete a separate account, form IHT100. If the risk assessors refer the IHT400 to Service they will state on Route 1 or Route 2 if an IHT100 should be requested from the trustees.
Page 1 of the IHT418 asks for
- the name of the settlor and the date when the trust was created.
- the name(s) of the trustees and the name and address of their agents.
Pages 2 and 3 ask for details of the assets of the trust, their values, and any deductions for liabilities and/or claims for exemptions and reliefs.
Page 2 is for details of the non-instalment property in the trust and page 3 for the instalment option property.
Page 4 is for details of any future rights to assets in a trust (IHTM04251).