What is HMRC?
Her Majesty’s Revenue and Customs (HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, and the administration of other regulatory regimes including the national minimum wage.
HMRC was formed in 2005 through the merger of the Inland Revenue and Her Majesty’s Customs and Excise, integrating the responsibilities of direct and indirect taxation under one authority.
The connection between HMRC and stamp duty is a crucial aspect of its tax collection functions. Stamp duty or Stamp Act 1694, particularly in its modern form as Stamp Duty Land Tax (SDLT), is a tax levied on property transactions, such as the purchase of houses, apartments, and other land and buildings. HMRC is responsible for administering and collecting SDLT, ensuring compliance with the relevant laws, and providing guidance and support to taxpayers in understanding and meeting their stamp duty obligations.
This role involves not just the collection of the tax but also the enforcement of its regulations, the handling of exemptions and reliefs, and the updating of rates and thresholds in response to economic conditions and housing market trends. HMRC’s administration of stamp duty is a significant factor in the UK’s fiscal landscape, contributing to government revenue and influencing the property market.
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HMRC and Stamp Duty
The history of taxation stretches back to the earliest civilizations, and of the many forms of tax that exist, stamp duty holds a unique place in financial and legal dealings in the UK. At the center of administering stamp duty is Her Majesty’s Revenue and Customs (HMRC), an entity that has been instrumental in shaping the country’s fiscal policies. The evolution of HMRC and the land tax first known as the Stamp Act 1694 and now called Stamp Duty Land Tax (SDLT) reflects the changing dynamic between the government and its citizens.
Formed in 2005 from a merger of the Inland Revenue and Her Majesty’s Customs and Excise, HMRC is tasked with collecting taxes, distributing some welfare payments, and administering regulations like the national minimum wage. Stamp duty, a critical part of HMRC’s remit, is a tax placed on documents that historically required a physical stamp to show the tax had been paid. Its origins trace back to the early 17th century, making it one of the oldest forms of tax still used today.
Stamp duty has changed a lot since its beginnings. Initially levied on a wide range of documents, nowadays it is primarily connected to property transfers and certain financial transactions. This evolution mirrors broader economic and social shifts, with adjustments to stamp duty often made in response to housing market conditions, economic challenges, and policy goals.
Looking at the historical circumstances and reasoning behind the various changes gives us a deeper understanding of how and why this tax came to play such a vital part in the UK’s financial structures.
In this post we delve into the history of HMRC’s stamp duty, the layers and decisions that turned a simple tax on parchment into a key piece of modern fiscal policy will reveal themselves.
HMRC / Stamp Duty pronounciation
The acronym “HMRC” for Her Majesty’s Revenue and Customs is typically pronounced by saying each letter individually: “aitch-em-are-see.”
For “stamp duty,” it is pronounced as two separate words:
- “Stamp”: Rhymes with “camp,” with a short ‘a’ sound.
- “Duty”: Starts with a ‘dew’ sound, like the word “dew,” followed by ‘tee’ with a short ‘i’ sound.
So together, it’s pronounced as “aitch-em-are-see stamp doo-tee.”
The Predecestor of HMRC
The predecessor of Her Majesty’s Revenue and Customs (HMRC) was the Inland Revenue, which was responsible for the collection of direct taxes within the United Kingdom. The Inland Revenue was established in 1849 and in 2019 celebrated its 170th Birthday since establishment. Following the merger of the Board of Excise and the Board of Stamps and Taxes. This merger brought together the administration of various forms of direct taxation under one roof.
The Inland Revenue’s primary responsibility was the collection of income tax, which was introduced in the UK by Prime Minister William Pitt the Younger (was the youngest PM in history) in his budget of December 1798 to pay for weapons and equipment for the Napoleonic Wars. It was repealed in 1802 and reintroduced in 1803. Over the years, the Inland Revenue’s role expanded to include the administration of other taxes, such as capital gains tax and inheritance tax.
In addition to the Inland Revenue, another key organization that played a significant role in the UK’s tax collection system was Her Majesty’s Customs and Excise. This department was responsible for the collection of indirect taxes, such as Value Added Tax (VAT), and the management of trade regulations and customs.
The modern HMRC was formed in 2005 through the merger of the Inland Revenue and Her Majesty’s Customs and Excise. This merger was part of a government initiative to streamline tax collection and provide better service to taxpayers. The creation of HMRC brought together the responsibilities of direct and indirect taxation, making it one of the largest government departments in the UK.
History of Taxation in the United Kingdom
- The earliest recorded law: The earliest recorded documentation of taxation in England dates back to the 7th Century, with various forms of tribal levies and dues, although these were not formalized in the way modern taxes are.
- Taxes existed in England even before the Norman Conquest in 1066, including feudal taxes levied by monarchs and landowners.
- In the 12th century, the government started sporadically assessing national taxes on personal property called “lay subsidies”.
- In the late 13th century, customs duties were introduced by King Edward I. Other early taxes included poll taxes and tenths and fifteenths on land.
- 1694: Introduction of the Stamp Duty, marking the beginning of this form of taxation in England.
- 1799: Introduction of the first form of income tax in the UK by Prime Minister William Pitt the Younger, to fund the Napoleonic Wars.
- 1842: The modern income tax was reintroduced by Sir Robert Peel and has been in continuous existence since then.
- 1849: Establishment of the Inland Revenue through the merger of the Board of Excise and the Board of Stamps and Taxes.
- 1860: The basic structure of modern income tax was set in place.
- 1944: Pay As You Earn (PAYE) system introduced for income tax collection during WWII.
- 1965: Introduction of Corporation Tax and Capital Gains Tax.
- 1979-1980s: Period of significant tax policy changes under Margaret Thatcher’s government, including the reduction of higher marginal tax rates.
- 1991: Major tax reform with the introduction of Self Assessment for individuals and businesses by the Inland Revenue.
- 2003: Introduction of the Stamp Duty Land Tax (SDLT). Introduction of the Stamp Duty Land Tax (SDLT), replacing the former stamp duty system with a more modern approach to property transaction taxation.
- 2005: Formation of HMRC through the merger of the Inland Revenue and Her Majesty’s Customs and Excise, integrating the responsibilities of direct and indirect taxation.
- 2008: Implementation of a temporary stamp duty holiday in response to the financial crisis, aimed at stimulating the property market.
- 2010: HMRC launches its first major digital service, making significant strides in modernizing tax collection and administration.
- 2011: Multiple Dwellings Relief (MDR) was introduced as part of the Finance Act 2011. The relief was designed to make the tax treatment fairer for bulk purchases or transactions involving more than one dwelling. Without MDR, such transactions could be subject to disproportionately high SDLT charges.
- 2012: Introduction of new anti-avoidance rules to combat tax evasion, reflecting HMRC’s increasing focus on compliance and enforcement.
- 2016: Changes to stamp duty, including higher rates for additional residential properties, aiming to cool the overheated property market.
- 2017: Introduction of first-time buyers relief for stamp duty, helping new entrants into the housing market.
- 2020-2021: Introduction of a stamp duty holiday as part of the economic response to the COVID-19 pandemic, leading to a surge in property transactions.
- 2021: HMRC’s continued digital transformation, with the expansion of online services and platforms for taxpayers.
- 2023: Ongoing efforts and discussions around further reforms to stamp duty and tax administration, adapting to post-COVID economic conditions.
This timeline provides a glimpse into how taxation in the UK evolved from informal tribal dues in the early medieval period to the structured, comprehensive system overseen by HMRC today.
Early History of Stamp Duty
The origins of stamp duty can be traced back to the early 17th century, marking it as one of the oldest forms of taxation still in existence today. Its inception was not just a fiscal innovation but also a reflection of the evolving nature of governance and commerce during that period.
Stamp duty was first introduced in Spain in 1617 and was adopted in the Netherlands shortly thereafter. The concept reached the shores of England in 1694 during the reign of William and Mary. The initial introduction of stamp duty in England was a temporary measure, intended to raise funds for the war against France. However, the utility and effectiveness of this form of taxation led to its permanent establishment.
The early stamp duty was a tax on legal documents, such as wills, marriage licenses, and contracts. To denote the payment of the tax, a physical stamp was affixed to the document, hence the name ‘stamp duty’. The rationale behind taxing these specific documents was twofold: firstly, it targeted transactions that were indicative of wealth or financial capacity, and secondly, it was relatively easy to administer since it could be enforced at the point of the document’s creation or transaction.
The scope of documents subject to stamp duty gradually expanded over time. By the 18th century, it included newspapers and pamphlets, which was a contentious move as it was seen as a way to curb the freedom of the press. This expansion reflected the government’s need to increase revenue streams to fund public expenditure, including wars and colonial expansion.
In its early days, stamp duty was a significant source of revenue for the government. It was also a tool for social and economic policy, as it could be adjusted to target specific types of transactions or behaviors. For instance, high duties on certain legal documents could be used to discourage frivolous lawsuits.
The administration of stamp duty in these early years was relatively straightforward. The tax rate was fixed, and the stamps were purchased and affixed to documents by the parties involved in the transaction. However, as the economy and society became more complex, so did the administration and scope of stamp duty, leading to various reforms and modifications over the centuries.
Formation and Role of HMRC
The formation of Her Majesty’s Revenue and Customs (HMRC) marked a significant shift in the administration of tax and customs duties in the United Kingdom. HMRC was established in April 2005 following the merger of the Inland Revenue and Her Majesty’s Customs and Excise, two of the most important government departments responsible for tax collection and administration.
This merger was a strategic move by the UK government, aimed at creating a more efficient and integrated tax authority. The goal was to streamline the process of tax collection, reduce administrative costs, and improve taxpayer services. By bringing together the responsibilities of direct and indirect taxation under one roof, HMRC became one of the largest government departments in the UK.
The Role of HMRC in Administering Stamp Duty
Stamp duty, with its long history as a significant source of government revenue, naturally fell under the purview of HMRC following its formation. Prior to the merger, the administration of stamp duty was handled by the Inland Revenue. As HMRC took over the functions of the Inland Revenue, it inherited the responsibility for administering stamp duty.
Over time, stamp duty evolved into various forms, including Stamp Duty Land Tax (SDLT), introduced in 2003, which is a tax on land and property transactions. HMRC’s role involves not only the collection of this tax but also the enforcement of regulations, providing guidance to taxpayers, and ensuring compliance with the relevant laws.
Stamp duty is a key component of HMRC’s tax collection portfolio. It represents a substantial source of revenue that contributes to the UK’s public finances. The administration of stamp duty by HMRC involves a complex system of rates and thresholds, exemptions, and reliefs, which are periodically reviewed and updated to reflect current economic and housing market conditions.
In addition to collecting stamp duty, HMRC plays a critical role in policy formation and implementation. Working in conjunction with the Treasury, HMRC provides input on how changes in stamp duty can influence the property market, investment behaviors, and overall economic growth. These insights are vital for shaping tax policies that are fair, effective, and aligned with broader economic objectives.
The formation of HMRC was a key milestone in the evolution of tax administration in the UK. The inclusion of stamp duty within its responsibilities highlights the importance of this tax in the broader context of the UK’s fiscal policy. HMRC’s role in administering stamp duty extends beyond mere collection of revenue; it encompasses a wide range of activities, including policy advisement, taxpayer assistance, and ensuring compliance with the legal framework governing stamp duty.
Major STAMP DUTY Amendments and Changes
The history of stamp duty in the United Kingdom is marked by numerous legislative changes and amendments, each reflecting the shifting economic, political, and social landscapes.
These alterations have often been driven by broader objectives, such as stimulating economic growth, addressing housing market issues, or adapting to changes in societal norms and practices.
Key Legislative Changes and Amendments:
Stamp Act 1694: This was the first instance of stamp duty in the UK, originally introduced as a temporary measure to fund the war against France. It marked the beginning of stamp duty as a permanent fixture in the British taxation system.
Finance Act 2003 and Introduction of Stamp Duty Land Tax (SDLT): This act was a significant overhaul of the stamp duty system. It replaced the old slab system with a progressive tax rate system for property transactions. The change aimed to make the tax fairer and more reflective of property values.
Stamp Duty Holiday and Variations: Over the years, there have been temporary stamp duty holidays, most notably during economic downturns or housing market slumps. For example, following the 2008 financial crisis, the government introduced a temporary stamp duty holiday to stimulate the property market.
Higher Rates for Additional Properties (2016): This change introduced higher stamp duty rates for buyers of additional residential properties, such as buy-to-let investors and second-home buyers. The goal was to cool down the overheated property market and provide more opportunities for first-time homebuyers.
First-Time Buyers Relief (2017): This amendment offered relief to first-time homebuyers, exempting them from paying stamp duty up to a certain property value. This was part of the government’s initiative to assist young people and first-time buyers in entering the housing market.
COVID-19 Stamp Duty Holiday (2020-2021): In response to the economic impact of the COVID-19 pandemic, the government introduced a temporary stamp duty holiday. This was aimed at boosting the property market and aiding economic recovery.
Reasons for Changes:
Economic Factors: Many changes in stamp duty legislation have been motivated by economic conditions. For instance, adjustments in tax rates or the introduction of holidays were often used as tools to stimulate the property market, encourage investment, or manage housing affordability.
Political Considerations: Tax policies, including those related to stamp duty, are often influenced by political agendas. Changes might reflect the government’s efforts to address public concerns, such as housing affordability for first-time buyers, or to create a more equitable tax system.
Social and Market Trends: Amendments have also been made in response to evolving social and market trends, such as the rise in buy-to-let investments and second-home ownership. Adjustments in stamp duty were used as regulatory measures to balance market dynamics and ensure fairness across different segments of the population.
The amendments and changes to stamp duty over the years have been a response to a complex interplay of economic, political, and social factors. Each legislative adjustment reflects an attempt to align the tax system with the prevailing conditions and challenges of its time, demonstrating the flexibility and responsiveness of stamp duty as a fiscal instrument.
SDLT Impact on Real Estate and Financial Transactions
The alterations in stamp duty laws have had a significant impact on the UK’s real estate market and financial transactions. These changes often serve as levers to influence the property market, either stimulating activity during economic downturns or cooling it down during periods of excessive growth.
Impact on the Real Estate Market:
Stimulating the Property Market: Stamp duty holidays and reductions have historically been used to stimulate the property market. For example, the stamp duty holiday introduced during the 2008 financial crisis provided a temporary boost to the housing market by encouraging transactions that might have otherwise been delayed or cancelled. A similar strategy was employed during the COVID-19 pandemic, helping to sustain the property market despite broader economic challenges.
Cooling an Overheated Market: The introduction of higher stamp duty rates for additional properties in 2016 aimed to cool down an overheated property market. This move was particularly targeted at buy-to-let investors and second-home buyers, with the intention of freeing up more properties for first-time buyers and reducing speculative buying.
Assisting First-Time Buyers: The 2017 relief for first-time buyers, which exempted them from stamp duty up to a certain property value, was designed to support individuals struggling to enter the housing market. This policy contributed to an increase in first-time home purchases, as it reduced the overall cost of buying a home.
Impact on Financial Transactions:
Influence on Investment Decisions: Changes in stamp duty rates can influence investment decisions, particularly in real estate. Investors often factor in the cost of stamp duty when calculating the potential returns on property investments. Higher rates may deter investment in rental properties, while lower rates or exemptions can make investments more attractive.
Transaction Volumes: Stamp duty rates can directly impact the volume of property transactions. Higher rates tend to result in a slowdown in transactions, as they increase the cost of buying and selling properties. Conversely, lower rates or temporary holidays can lead to a surge in transactions.
Significant Case Studies or Examples:
2008 Financial Crisis Stamp Duty Holiday: Following the financial crisis, the UK government temporarily increased the stamp duty threshold, leading to a notable increase in property transactions. This move was credited with providing a much-needed stimulus to the housing market during a period of economic uncertainty.
COVID-19 Stamp Duty Holiday: In response to the economic impact of the pandemic, the government introduced a stamp duty holiday in 2020. This policy led to a significant surge in property transactions and prices, as buyers rushed to take advantage of the tax savings.
Stamp duty laws have a profound impact on the real estate market and financial transactions in the UK. Changes in these laws are closely watched by buyers, sellers, and investors alike, as they can significantly alter the cost and attractiveness of property transactions. The government often uses stamp duty as a tool to manage the property market, reflecting broader economic policies and objectives.
Modern Era and Current Practices of Land Taxation
In the modern era, stamp duty laws and practices in the UK have continued to evolve, reflecting the changing dynamics of the real estate market, technological advancements, and shifts in economic policy. The current landscape of stamp duty is characterized by a more sophisticated and technologically driven approach to taxation, along with a diverse set of regulations designed to address various aspects of property transactions.
Current Stamp Duty Laws and Practices:
Stamp Duty Land Tax (SDLT): SDLT is the primary form of stamp duty in the UK, applied to transactions involving the purchase of property or land over a certain price threshold. The tax rate varies depending on the value of the property and the buyer’s circumstances, such as first-time buyer status or ownership of additional properties.
Higher Rates for Additional Residential Properties: Buyers purchasing additional residential properties are subject to higher SDLT rates. This policy aims to manage the property market, particularly in relation to buy-to-let investments and second homes.
First-Time Buyers Relief: This relief offers exemptions or reduced rates for first-time buyers, making it easier for them to enter the property market.
Corporate and Non-Residential SDLT: Different SDLT rates and thresholds apply to corporate entities and non-residential property transactions, such as commercial real estate.
Impact of Modern Technology and Policies:
Digitalization of Tax Administration: HMRC has embraced digital technology to streamline the process of stamp duty collection. The introduction of online filing systems for SDLT returns has made the process more efficient and accessible for taxpayers.
Data-Driven Decision-Making: HMRC now utilizes data analytics to inform policy decisions and improve compliance. This data-driven approach allows for more targeted and effective tax policies.
Automatic Calculation and Payment Systems: The use of digital platforms has enabled automatic calculations of stamp duty, reducing errors and simplifying the payment process for property transactions.
Connected Taxes and Legislation:
Capital Gains Tax (CGT): Although separate from SDLT, CGT is relevant in the context of property transactions, particularly for investment properties. It applies to the profit made on the sale of property that is not a primary residence.
Inheritance Tax: In some cases, inheritance tax considerations intersect with stamp duty, especially when property is inherited and subsequently sold.
Annual Tax on Enveloped Dwellings (ATED): This tax applies to companies that own UK residential property valued above a certain threshold, further impacting decisions around property ownership and transactions.
Finance Acts: Various Finance Acts have been instrumental in shaping current stamp duty laws, introducing amendments, and updating regulations in response to economic and market conditions.
HMRC’s approach to stamp duty reflects a balance between revenue generation, market regulation, and technological innovation. The current practices and laws are designed to be adaptable, ensuring that stamp duty remains an effective tool for fiscal policy while also addressing the needs and challenges of today’s property market, allowing for home owners to claim back Stamp Duty.
Read also: Claiming SDLT back
Comparative Analysis: UK's Stamp Duty System vs. Other Countries
The UK’s stamp duty system is unique in its structure and implementation, especially when compared to similar taxes in other countries. A comparative analysis reveals how different nations approach property taxation, each tailored to their specific economic and social contexts.
UK vs. USA:
Structure: In the UK, Stamp Duty Land Tax (SDLT) is charged on the purchase of properties and land. In the USA, there is no direct equivalent to SDLT. Instead, real estate transfer taxes are imposed at state or local levels, varying significantly across different states.
Rates: SDLT rates in the UK are progressive, based on the property’s value and the buyer’s circumstances. In contrast, the USA’s transfer taxes usually have a fixed rate, differing from state to state, and are often lower compared to the UK’s rates.
Exemptions and Reliefs: The UK offers specific reliefs, such as for first-time buyers. The USA’s system also includes exemptions, but these are more localized and can vary widely.
UK vs. Australia:
Structure: Australia’s equivalent to SDLT is Stamp Duty, levied on property transactions. Each state and territory in Australia sets its own stamp duty rates and rules.
Rates: Like the UK, Australian stamp duty is progressive. However, the thresholds and rates differ among states and territories, and in some cases, they can be higher than in the UK.
Exemptions and Concessions: Both countries offer concessions to certain groups. In Australia, concessions are often provided to first-time homebuyers, similar to the UK.
UK vs. Canada:
Structure: In Canada, the closest equivalent is the Land Transfer Tax (LTT), applied at provincial levels. Additionally, some cities like Toronto have their own municipal LTT.
Rates: Canadian LTT rates are also progressive. However, the thresholds and maximum rates can vary, often being lower than the UK’s SDLT.
Exemptions and Rebates: Canada offers rebates and exemptions, particularly for first-time homebuyers, similar to the UK system.
Common Themes and Differences:
Progressive Rates: Most countries, including the UK, use progressive rate structures for property transaction taxes, where the tax rate increases with the property value.
Local Variations: Unlike the UK’s nationally uniform SDLT, countries like the USA and Australia have significant local variations in their property transaction taxes.
First-Time Buyer Focus: Many countries, like the UK, offer specific benefits to first-time buyers to encourage homeownership.
Revenue and Policy Goals: Stamp duty and its equivalents are significant revenue sources and are used as tools for achieving various policy goals, such as housing market regulation and economic stimulation.
While there are similarities in the objectives behind property transaction taxes globally, the implementation and specifics of these taxes can vary widely. The UK’s stamp duty system, with its progressive rates and specific reliefs, reflects its unique economic, historical, and social contexts, just as other countries’ systems reflect theirs.
Why does Stamp Duty exist?
Stamp duty mainly exists today as an asset transfer tax to generate government revenue, while also serving some regulatory functions around property transactions. The rates and exemptions given often align with broader policy goals around home ownership and real estate markets.
Stamp duty is a tax that is levied on certain legal documents, usually related to property purchases or transfers. Here are some of the key reasons why stamp duty exists in many countries:
- To generate revenue for the government – Stamp duty can generate significant tax income that the government uses to fund public services and infrastructure projects. It is typically calculated as a percentage of the property’s sale value.
- Historical reasons – Stamp duty originated centuries ago in the UK when a physical stamp had to be purchased and attached or “impressed” onto certain legal documents to make them valid. This was an easy way for the government to collect revenue. The name has stuck even as the process has become digitized.
- Discourage speculation – High stamp duty rates may be used by governments to discourage real estate speculation, rapid flipping of properties, and keeping homes vacant as speculative investments. This aims to increase home ownership affordability. First-time home buyer exemptions are sometimes given.
- Validate legality of documents – The payment of stamp duty helps validate the legality of property sale contracts, lease agreements, and land transfer deeds. It signifies proper registration and authorization.
- Fund local councils – In some countries, a large share of stamp duty revenue funds essential services and infrastructure provided by local municipal councils. This redistributes income from property conveyancing to community needs.
Stamp Duty Future Outlook
The future of HMRC’s stamp duty may involve several potential changes and reforms:
Further Digitalization: Continued advancements in technology could lead to more sophisticated digital platforms for stamp duty administration, enhancing taxpayer experience and compliance.
Responsive Tax Policies: As the economic and housing landscapes continue to evolve, stamp duty policies may need to be increasingly responsive and flexible to address new challenges and opportunities.
Sustainability and Social Responsibility: Future reforms might incorporate considerations for environmental sustainability and social responsibility, aligning stamp duty policies with broader governmental goals.
Global Influences: International economic trends and comparative tax policies might influence future reforms in stamp duty, as the UK continues to navigate its post-Brexit financial landscape.
Balancing Revenue and Market Health: The government will likely continue to balance the need for revenue generation with the health of the property market and broader economic objectives.
HMRC’s stamp duty has played a crucial role in shaping the UK’s financial landscape. Its evolution and impact are testament to its significance as a fiscal tool, adapting to the needs of the times. As we look to the future, stamp duty will undoubtedly continue to evolve, reflecting and responding to the ever-changing economic, technological, and social environments.
Tail provisions and disclaimers are both contractual tools to define a limited additional liability period for past deals to provide a cleaner break between parties at the end of a transaction or policy term.
- Risk Management – Both are risk management tools to limit ongoing liability after the active policy/transaction period ends.
- Expanded Coverage – They provide some protection from claims discovered later related to past acts during the active policy/deal period.
- Specified Timeframe – There is a set additional timeframe for coverage under tail provisions and statute of limitations on claims for disclaimers.
- Additional Cost – Extending liability coverage requires payment of tail premiums to the insurer. Making disclaimers may limit marketability and sale price.
- Reduce Exposures – Tail policies and disclaimers aim to reduce uncertainty and future legal exposures for the insured’s/seller’s past acts and services.
- Not Retroactive – They do not eliminate liability for errors and omissions during the active transaction/policy but limit future claims.
- Buyer Beware – The buyer takes on more responsibility to identify issues just as the new insurer takes on potential risks of past acts.
- Written Notice – Tail provisions are contract clauses activated by written notice. Disclaimers are written notices to buyers of limited liability.
- Jurisdiction-Specific – The laws on real estate disclaimers vary by state as tail coverage provisions can vary by policy terms.
