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Chapter IHTM12213

Document Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM12213
CourtHM Revenue & Customs
Example 1

The deceased, Dominic, died domiciled in Scotland on 12 June 2000, intestate, survived by a widow and children. (IHTM12252)

He left heritable estate valued at £110,000, consisting of a house (value £100,000) and a field (value £10,000), and moveable estate valued at £20,000, consisting of furniture (value £12,000) and cash and investments (value £8,000).

The widow’s maximum prior rights (IHTM12211) entitlement according to the value levels (IHTM12212) in force at Dominic’s death would be

  • house up to value of £130,000
  • furniture up to value of £22,000, and
  • a cash provision of £35,000.

However, her actual entitlement is necessarily restricted by the value of the estate, and she takes the whole estate. Her restricted entitlement would be met in this way

  • house (full entitlement) £100,000
  • furniture (full entitlement) £12,000, and
  • cash provision (restricted) £18,000 being the whole remaining heritable and moveable estate.

As the widow’s prior rights exhaust the entire estate, there can be no legal rights (IHTM12221) entitlement in this situation.

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Example 2

Take the same facts as for Example 1, except that Dominic left cash and investments valued at £40,000.

In this situation the widow would receive her full prior rights entitlement, namely

a. house £100,000
b. furniture £12,000
c. cash provision £35,000

After prior rights a. and b. have been met, the whole remaining estate amounts to £50,000, being:

  • heritable estate (the field) = £10,000 and
  • moveable estate (the cash and investments) = £40,000.

The cash...

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