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Daniel died on 21 June 2015. He had made the following lifetime gifts.
3 March 2005 gift to trust of $ 126000
12 Jan 09 gift of $ 40000 to hubby
10 May 09 gift to nephew $ 200
23 June 2009 gift to daughter $ 240000
2 sept 09 gift of $ 300000 to trustnil rate band 2004-05 $ 250,000
nil rate band 2009-10 $ 312,000
nil rate band 2015-16 $ 325,000what i do not understand is why is 3 March 05 added on death.
in copy books teacher put a note
1st step uis to calculate IHT on death to identify the first transfer made within 7 yrs back from death, this is ok i understand.here it is 12 jan 09, then we bring forward all the chargeable trsfers made within 7 yrs from 12 jan 09, is is not 14 yrs back?The steps you should follow are as follows:
1) Calculate the chargeable transfer figures for each lifetime transfer (transfer of value less exemptions)
2) Compute the IHT payable in lifetime on CLT’s
3) Compute the IHT payable on lifetime transfers made in the 7 years before death
4) Compute the IHT payable on the chargeable estate at deathListen to the OT lectures on IHT and follow the OT course notes.
The specific issue you raise about CLT’s made more than 7 years before death, but within 7 years of any lifetime transfers that do fall within 7 years of death and are therefore chargeable on the death of the taxpayer is dealt with in Chapter 24 of the OT course notes, section 9, page 147
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