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NO it is not. That is why we have the 7 year rule on PET’s to ensure that such gifts are not exempt IHT, as it would otherwise be easy to avoid IHT
B died on 30 nov 2016 leaving an estate valued at £890000. Inheritance tax of £276,000 was paid in respect of the estate. under therms of the will, B left £260,000 to his wife, a specific legacy of £120,000 (free tax) to his brother, and the residue of the estate to his grandchildren
what is the amount of inheritance received by B’s grandchildren?
@kissansing said:
B died on 30 nov 2016 leaving an estate valued at £890000. Inheritance tax of £276,000 was paid in respect of the estate. under therms of the will, B left £260,000 to his wife, a specific legacy of £120,000 (free tax) to his brother, and the residue of the estate to his grandchildrenwhat is the amount of inheritance received by B’s grandchildren?
Dear Sir i am unable to understand the above question please help me to solve it.
Thanks
Regards
Roshan
@kissansing said:
Dear Sir i am unable to understand the above question please help me to solve it.Thanks
Regards
Roshan
Firstly you should not be attempting questions to which you do not have the answer, there are more than sufficient questions in the exam kits supplied by the approved providers.
This question requires you to compute what value of property before tax goes to the grandchildren and then deduct the IHT on the chargeable estate from that figure – as the grandchildren are the residuary legatees it is they that suffer the full IHT cost on the chargeable estate
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