IHTM12197 - Succession: Simultaneous deaths (commorientes): Death of elder

Because IHTA84/S4 (2) applies only for the purposes of IHTA84/S4 (1) and does not affect the devolution of the estate, spouse or civil partner exemption (IHTM11031) under IHTA84/S18 is still available in England and Wales on property passing on death from the elder to younger spouse or civil partner.

Example

Hector leaves his estate to his younger wife, Wanda, by Will without any requirement that she should survive him by a specified period, such as 30 days. Her Will leaves her estate to Hector but if he does not survive her it passes to their children. Hector and Wanda are killed in an accident. The order of their deaths cannot be established so devolution is governed by Law of Property Act/ S184. Hector being the elder is deemed to have died first, so his assets pass into Wanda바카라 사이트™s estate. Wanda바카라 사이트™s estate passes to their children.

The position for Inheritance Tax (IHT) is:

  • On Hector바카라 사이트™s death his estate is spouse or civil partner exempt because Hector바카라 사이트™s estate  passes to Wanda and S4(2) does not prevent S18 applying
  • on Wanda바카라 사이트™s death S4(2) operates to exclude Hector바카라 사이트™s death estate from Wanda바카라 사이트™s death estate for the purposes of the charge under S4(1) on her death. Since Hector and Wanda are treated as having died at the same instant we tax only Wanda바카라 사이트™s own estate in connection with her death.

The result is that Hector바카라 사이트™s estate escapes IHT on both deaths. So it reaches the children, the beneficiaries under Wanda바카라 사이트™s Will, without incurring a tax charge.

In the example above the position would have been different if Hector바카라 사이트™s Will had required Wanda to survive him by a certain number of days before she could inherit, or if he had died intestate (IHTM12101). Hector바카라 사이트™s estate would then have passed directly to the children so Hector바카라 사이트™s estate would not be spouse or civil partner exempt.

The treatment of simultaneous deaths in Scotland (IHTM12193) and in Northern Ireland (IHTM12194) is different and no spouse or civil partner exemption under S18 is available in these circumstances.