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HMRC internal manual

Inheritance Tax Manual

Settled property: survivorship clauses in a will

Clauses in wills providing that the beneficiary will inherit only ‘if he survives me for 28 days etc.’ are very common.

IHTA84/S92 seeks to simplify the results of such clauses by providing that if the person survives then their benefit takes effect from the date of death. If they don’t survive then the interest of the person who takes the benefit also takes effect from the death.

The aim is to do away with any consideration of the trusts on which the property or its income is held during the waiting period.

The effect of S92 is that if under a will or settlement property is held for any person on condition that they survive a specified person for a period not exceeding six months, any trusts during the specified period are disregarded, and the dispositions which actually take effect at the end of the specified period are treated as having done so immediately on death.