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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Pensions: IHT Charges: payments continuing after death

The deceased may have had a pension arrangement in payment where the payments were guaranteed for a certain length of time, usually an annuity payable for 5 or 10 years. If the guaranteed payments made after the death are paid to the estate or at the direction of the deceased the value (at the date of death) of those payments is an asset of the estate. If the continuing payments are made at the discretion of the pension or annuity provider, their value is not treated as part of the estate. The calculation of the value at the date of death is an actuarial one. In simple cases you can use the annuity calculator on the HMRC website. External customers can find this calculator at . The Boards Actuarial Officer will deal with the calculation of the open market value and consider any values.