An IHT 250 Form will be required if the Estate is “excepted”.

An IHT 400 Form will be required if the Estate is not “excepted”.

If any of the following criteria apply to the deceased, the Estate will not be excepted and an IHT 400 form will be required:

– they left an Estate worth more than the Inheritance Tax threshold (£325,000 in 2014 to2015 tax year) or an Estate worth more than £1 million to a spouse, civil partner or ‘qualifying’ charity

– they left an estate worth more than twice the Inheritance Tax threshold (£650,000 in 2014 to 2015) when 100% of the unused Inheritance Tax threshold could be transferred from a late spouse or civil partner

– the deceased’s Estate needs a transfer of unused Inheritance Tax threshold from a late spouse or civil partner to avoid paying Inheritance Tax and less than 100% is available to transfer – even if the full 100% is not needed

– they had a permanent home outside the UK when they died but had a permanent home within the UK at any time

– they had assets in a trust valued at more than £150,000 or held more than one trust

– they had assets worth more than £100,000 outside the UK

– they made gifts within the seven year period before they died and the value of the gifts was more than £150,000 after deducting any Inheritance Tax exemptions

– they made gifts into trusts

– they continued to benefit from a gift they had made to someone else, such as their house or car, known as a ‘gift with reservation of benefit’

– they had a life insurance policy that paid out to someone other than their spouse or civil partner, and they had also bought an annuity

– they had a personal pension from which they had not taken their full retirement benefits and, when they were terminally ill or in poor health, they changed the death benefits payable on it to increase the value of the lump sum

– they had, or were the beneficiary of, an ‘Alternatively Secured Pension’ or unsecured pension

– they elected that property that they had given away should be part of their estate for Inheritance Tax, rather than pay a ‘pre-owned asset’ charge

– they were regarded as ‘deemed domicile’ in the UK. This usually applies if the deceased wasn’t born in the UK but had lived in the UK for the last 17 years, or was born in the UK but died within three years of emigrating