General procedure: investigation
Compliance enquiry cases
In an enquiry case you should call for a copy of the trust deed if not already held and, if a trust of a policy (IHTM20141) is involved, any associated policy documents.
Termination of interest during lifetime
In the case of a termination of an interest in possession (IHTM16091) you should ask for a copy of the Deed of Release or other document terminating the interest in possession, then review the documents to consider their effect for IHT in the deceased’s lifetime and on death. If the trust was set up by a Will you should review it following the principles of construction of Wills (IHTM12052).
Lifetime transfer or release is a PET
If the deceased made a failed potentially exempt transfer (PET) involving a lifetime transfer into settled property or a termination of an interest in possession you should consider the appropriate investigation issues relating to lifetime transfers.
Termination of interest on death
If the deceased had an interest in possession which terminated on death you should investigate the assets, liabilities and any reliefs claimed on form IHT418 or IHT100 along the same lines as your investigation of the deceased’s free estate.