Husbands assets = Investments £350k,+ Residential Property = £400k/2 (T-in-C) = £200k
Spouse assets = Ditto
Husband makes gift of £50k to son and dies 2yrs after gift made.
Spouse inherits deceased estate of £550k-£50k = £500k.....
Spouse dies 1yr. after receiving above inheritance of £500k...,
leaving estate valued at £550+ £500k = £1050k to son
Question 1.) In the above circumstances am I correct in thinking that the IHT Allowance that will be applied to this inheritance will be £1000k-£50k = £950k,...therefore IHT will be applied to £1050k-£950k =£100k at 40% = £40k
Question 2.) if my thinking on Qu.1) is correct,Is the £40k of IHT to be paid by the Estate or by the Benificiary (the son)?
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