Settled property: on death
When a qualifying interest in possession (IHTM16061) in settled property (IHTM16000) terminates on death, the settled property forms part of the death estate. Subject to one qualification, you may allow any appropriate quick succession relief (IHTM22041).
The qualification is that you will have to restrict the tax available for deduction if part (or all) has been deducted against tax on a lifetime (IHTM22092) termination of your deceased’s interest in part of the settled property. You can see an example of this calculation at IHTM22093.