Valuing a benefit in a trust
You will need to value any assets in a trust from which the deceased person benefited. There are two main types of trust and these are the ones that you are likely to encounter.
Firstly, there is an ‘interest in possession trust’ where the beneficiary of the trust is entitled only to the income generated by the trust assets.
Secondly, there is a ‘bare trust,’ where the beneficiary is entitled to the income and also the assets.
Valuing an interest in possession trust
If the deceased person was entitled only to the income of a trust then only the value of the assets should be included in your valuation.
Valuing a bare trust
If the deceased person was entitled to both the income and assets of a trust then you should include both the value of the assets and the income.
Dealing with the valuation of assets in a specific trust can be complicated and professional advice from a solicitor or accountant may be required.
You can call the Probate and Inheritance Tax Helpline on 0300 123 1072. The helpline is open from 9am to 5pm Monday to Friday (closed on bank holidays).
To access the HM Revenue & Customs Inheritance Tax Manual, please click here.
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