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IHT418 – Assets held in trust

The form IHT418 form is used if the deceased had the right to benefit from a trust created by a deed or under someone’s Will or intestacy. If the deceased had the right to benefit from more than one trust, you should complete a separate form for each trust (very important to remember).

What are the steps when completing a IHT418 form?

Step 1: Gather all the necessary information

Before you start completing the IHT418 form, you need to gather all the necessary information. This includes the following:

  • The date of the deceased’s death
  • The value of the estate
  • Details of any gifts made by the deceased within the last seven years of their life
  • Details of any trusts established by the deceased
  • Details of any assets held in joint names
  • Details of any debts owed by the deceased

You may also need to obtain valuations of certain assets, such as property or shares, so that you can accurately report the value of the estate.

Step 2: Complete the first section of the IHT418 form

The first section of the IHT418 form requires you to provide information about the deceased, including their name, address, date of birth, and date of death. You also need to provide details of your own name and address, as well as your relationship to the deceased (i.e. whether you are the executor or administrator of the estate).

Step 3: Complete the second section of the IHT418 form

The second section of the IHT418 form requires you to provide details of any gifts made by the deceased within the last seven years of their life. This includes gifts made to individuals, as well as gifts made to trusts or companies. You need to provide the following information for each gift:

  • The date the gift was made
  • The value of the gift
  • The name and address of the recipient
  • The relationship between the recipient and the deceased
  • Whether any exemptions or reliefs apply to the gift

You also need to provide details of any gifts made by the deceased that were exempt from IHT, such as gifts to a spouse or civil partner, gifts to charities, or gifts made as part of the annual exemption.

Step 4: Complete the third section of the IHT418 form

The third section of the IHT418 form requires you to provide details of any trusts established by the deceased. This includes details of the trustees, beneficiaries, and assets held within the trust. You also need to provide details of any transfers of assets into or out of the trust that were made within the last seven years of the deceased’s life.

Step 5: Complete the fourth section of the IHT418 form

The fourth section of the IHT418 form requires you to provide details of any assets held in joint names with someone other than a spouse or civil partner. This includes details of the value of the assets and the percentage of ownership held by the deceased.

Step 6: Complete the fifth section of the IHT418 form

The fifth section of the IHT418 form requires you to provide details of any debts owed by the deceased, including mortgages, loans, and credit card debts. You also need to provide details of any funeral expenses and other expenses related to the administration of the estate.

Step 7: Check the form and submit it to HMRC

Once you have completed the IHT418 form, you should check it carefully to ensure that all the information is accurate and complete . You should also double-check that you have attached any supporting documents, such as valuations or bank statements, as required.

After you are satisfied with the accuracy of the information provided, you can submit the IHT418 form to HMRC. You can do this either by post or online, depending on your preference. If you choose to submit the form online, you will need to create an account with HMRC’s online services and follow the instructions provided. If you choose to submit the form by post, you should send it to the following address:

HM Revenue and Customs
Trusts and Estates, IHT
BX9 1HT

It is important to note that you must submit the IHT418 form within 12 months of the date of death, otherwise you may face penalties and interest charges.

Step 8: Pay any tax owed

If you need to pay IHT, you should use the reference number provided by HMRC to make the payment. You can make the payment online, by phone, or by post, depending on your preference.

Completing the IHT418 form can be a complex and time-consuming process, but it is an important step in the administration of an estate. By following the steps outlined in this article, you should be able to complete the form accurately and submit it to HMRC within the required timeframe. If you are unsure about any aspect of the process, it may be helpful to seek advice from a professional who can provide guidance and support throughout the process.

Are you looking for help to complete the IHT400 form? Give DIY Probate a call on 0116 2795044, and we’ll be happy to help.

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