For deaths on or since the introduction of the new rules, you may still need to report to HMRC if the deceased made gifts during their lifetime. If they made gifts within the seven years prior to their death which exceed £250,000 in value, or any gifts from which they continued to benefit personally during this time, you will need to send valuation details for the estate.
Certain assets may also mean that reporting remains necessary. If the deceased held foreign assets worth more than £100,000, or if they left a life insurance policy to be paid out to someone who was not their spouse or civil partner, you will need to report to HMRC. Trusts may also mean that you are required to report. Where the deceased benefited from a trust which has a value greater than £250,000, or if they held more than one trust, you may need to submit a return.
Another consideration is where the deceased lived when they passed away. Different, more complex, rules apply in relation to foreign domiciled or deemed domiciled persons. These terms have very specific legal meanings, and you should seek advice if the domicile of the deceased is in any doubt whatsoever.
One further factor is the overall value of the estate. Where it exceeds £3 million HMRC require valuation details even if no inheritance tax falls due, such as where the entire estate passes to charity.
It can be difficult to determine when reporting is needed, but if you are an executor, it is your responsibility to ensure that you are compliant with HMRC’s requirements. If you are in any doubt, you should seek professional advice.