Insurance premiums - question 6 on forms IHT205 and C5

This guide answers common questions about insurance policies on the Inheritance Tax ‘Return of Estate Information’ forms IHT205 and C5.

Insurance premiums - question 6

Most people’s insurance policies pay out to their estate if they die. If this was the case for the deceased, you can answer ‘no’ to question 6 and move on.

However, the estate won't be an excepted estate if either of the following applies. The deceased:

• put an insurance policy into a trust within seven years of the death
• bought an annuity and paid premiums on an insurance policy that would pay out to someone else and not their estate - for example to a child

In this case you’ll have to fill in a full Inheritance Tax account instead - form IHT400.

• Get form IHT400 - Inheritance Tax Account

More useful links

• Guidance notes IHT206 for form IHT205
• Guidance notes C3 for form C5