Inheritance Tax Act 1984 section 49A

Immediate post-death interest

Section 49A defines what qualifies as an "immediate post-death interest" in settled property for inheritance tax purposes, by setting out four conditions that must all be met.

• The settlement must have been created by a will or under the rules of intestacy — it cannot arise from a lifetime trust or any other arrangement made during the deceased's lifetime.
• The beneficiary must have become entitled to the interest in possession at the moment of the testator's or intestate's death — not at some later date.
• The property must not fall within the bereaved minors trust rules, and the interest must not be a disabled person's interest.
• The exclusions in the third condition must have applied continuously from the moment the beneficiary first became entitled — if at any point the property became subject to bereaved minors trust treatment or the interest became a disabled person's interest, the immediate post-death interest status is lost.