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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4191
Experience:  FCCA FCMA CGMA ACIS
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My wife died 15/3/2014. we have a Portfolio Bond in our joint

Customer Question

My wife died 15/3/2014. we have a Portfolio Bond in our joint names with the Norwich Union now AVIVA, commenced 15/12/2000. single premium £11670. Natural income is taken monthly to our joint bank account. Life cover benefit is on the second death and I am told there is not a chargeable event at the moment. I am the survivor (husband) completing form IHT 205. My question is - should I include half of the value given by AVIVA as at 15/3/2014, full value£12869, in box 9.2, 11.3 or 11.5
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question. My sincere condolences on your wife's death.

 

9.2 appears the appropriate box to complete. Unless you wife's estate exceeds 325K, the point at which Inheritance Tax (IT) kicks in, then the whole process is an exercise in financial futility! Any part her estate which has been left to you [inter spousal transfer] or to charity is outside the 325K envelope in any event.

 

There is one point to note, though. Any of her 325K unused can be utilised in addition to your 325K allowance on your ultimate demise so you should keep a record for your executors or administrators. A bit gloomy, but a point to bear in mind. You win the National Lottery Roll Over just before you depart this life and everybody will be lapping around the residue!