Dear Ade,

Can you answer me a question that’s several times been nearly the start of a domestic in my parents’ household:
what is a person’s estate?
Thanks,
Adelaide


Hello my near namesake,

Thank you for contributing to the opening article of
No Malarkey, it’s a kind of Back to Basics section.

For inheritance tax purposes, one’s estate includes:

  1. The value of assets in a person’s outright ownership.
  2. The value of the persons half share of any assets jointly owned as joint tenants.
  3. The value of the person’s percentage share of any assets jointly owned as tenants in common.
  4. The capital value of any trust in which the person has a qualifying interest in possession (QIIP).
  5. The value of any assets given away in the person’s lifetime which are still subject to a gift with reservation of benefit.
  6. The value of assets given away in the seven years preceding death; while not part of the deceased’s estate, this is brought into account in calculating inheritance tax on death.

The way to make sure your estate is properly accounted for and your beneficiaries get all – all  – of your estate, and don’t pay more tax than they need to, is to keep proper records.
Records of assets in your name,
gifts you’ve made and gifts you’ve received – with dates.

Regards,
Ade