Life Policies: investigating form IHT410: if the answer to Question 1 is Yes
The name of the insurance company, the policy number and the amount paid under the policy should be given for each policy involved, at box 2. The policy will form part of the death estate and the proceeds will be payable to the legal personal representatives. Unless it is exempt, (for example. because it is left to the surviving spouse or civil partner (IHTM11032) by Will), Inheritance Tax is payable on the claim value (IHTM20084) at the date of death.
If no value has been returned for the policy you should ask the taxpayer or agent for a letter from the insurance company, stating the claim value that would have been paid if they had been notified of the death on the date of death itself.
If a value has been given for the policy you should accept the value offered unless:
- There is doubt about whether it is the claim value - you should ask the taxpayer for a letter from the insurance company stating the claim value that would have been paid if they had been notified of the death on the date of death itself.
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
There is further guidance at IHTM20211.