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The IHT 'estate'

I3.211 Meaning of estate generally

The question of what property forms part of a person's estate is important in relation to lifetime transfers for a number of reasons.

1. Ìý

   •ÌýÌýÌýÌý Firstly, a reduction in the value of the estate when property leaves it may give rise to a charge to IHT

2. Ìý

   •ÌýÌýÌýÌý Secondly, if property leaves the estate and other property comes in to replace it, the effect may be to prevent a charge to IHT accordingly a direction that the incoming property should not form part of the estate, such as there is for reversionary interests in the circumstances covered by IHTA 1984, s 55(1), I5.726, serves to create an IHT charge where there would not otherwise be one

3. Ìý

   •ÌýÌýÌýÌý Thirdly, if the property forms part of someone's estate it may fall foul of the related property rules by reason of his spouse or civil partner having similar property¹ — see I8.241.

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