Residue of the estate

Hello Jilly,

Q
What is the amount of inheritance received by Benjamin’s grandchildren?

Now here the question asked about the amount received so should we take the amount before tax or after and why we selected the amount after tax ?

and what case we have to choose the amount before tax?

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Q

Benjamin died on 30 November in this tax year, leaving an estate valued at £890,000.

Inheritance tax of £276,000 was paid in respect of the estate.

Under the terms of his will, Benjamin left £260,000 to his wife, a specific legacy of £120,000 (free of tax) to his brother, and the residue of the estate to his grandchildren.

What is the amount of inheritance received by Benjamin’s grandchildren?

£614,000
£510,000
£354,000
£234,000

Answer

£234,000

Thanks