IHT100

The official form used to report chargeable liftime gifts to HMRC.

IHT205

The official return of estate form to be sent to HMRC when there is no inheritance tax to pay on an estate.

IHT400

The official form of inheritance tax account to be sent to HMRC when there is likely to be inheritance tax to pay on an estate.

IHT422

The official form of application to obtain an inheritance tax reference number from HMRC.

IHT423

The form to complete when Executors wish to pay inheritance tax direct from the deceased’s bank or building society accounts.

IHT435

The form for claiming the residence nil rate band.

Illegitimate

Describing a person whose parents are not married or in a civil partnership.

Individual legacy

A gift in a Will to a single person.

Inheritance Act Statement (or Declaration)

A legally recognised document written at the same time as a Will stating the testator’s reasons for writing the Will as they have. It is often used if the testator has made lifetime gifts to someone who is financially dependent on them and fears the person may challenge the testator’s Will.

Inheritance tax (IHT)

A tax paid on an individual’s estate which is worth more than £325,000 when they die. There are a number of exemptions and reliefs from inheritance tax.

Inheritance tax relief

A reduction in the amount of inheritance tax payable if the assets in question satisfy certain conditions. Agricultural property and business property are examples of assets which attract relief from tax.

Inheritance tax threshold

The nil rate band of inheritance tax.

Insolvent estate

When the assets of an estate are insufficient to meet all the debts of the estate.

Interest in possession

A right to the income from a trust.

Intestacy

Where a person dies without leaving a valid Will. The deceased is said to have died intestate.

Intestacy rules

The rules of law which determine the order in which people inherit the estate if there is no Will.