½Û×ÓÊÓƵ

Where a claim under the Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975) gives rise to a court order, or court approved compromise (see I4.442, I4.443), or is effected by a deed of variation within IHTA 1984, s 142 (see I4.411–I4.419), IHTA 1984 applies as if the provision were made by the deceased.

The exempt part of the deceased's estate may be increased where, say, the claimant is the deceased's spouse and the beneficiary from whose interest in the estate the provision is made is the deceased's child. Alternatively it could be reduced where, say, the claimant is the deceased's child and the beneficiary is a charity.

In the latter case, the reduction of the exemption could be avoided by the exempt beneficiary settling the claim in a way that was not treated as a disposition by the deceased.

IHTA 1984, s 29A reduces the amount of exemption available to a deceased person's estate where an exempt beneficiary of the estate settles a claim against the estate under