If today I make a gift to my grandchildren of £20k,having already made use of IHT gift allowances and I died within a year, I am trying to establish if IHT would be due on this amount by virtue of the 7year rule and it being a PET.
I intend for my wife to automatically or via my Will to inherit my estate.
If my estate is made up of investments of £300k and my share of house of £200k(T-in-C), ie total £500k, and this goes to my wife, where does the NRB enter the IHT calculations?
Am I correct in thinking that there would be no IHT to pay on this first death,and that the £20k gift would be deducted from my transferred NRB to my wife,..ie this transfer would now be £305k,and therefore a total NRB on second death of £325k+£305k.
And finally if above applies i presume it would be form IHT205(2011) that would need to be completed by the Executors following my death,and having looked at this form,£20k would be the ‘Net qualifying value for excepted estates’...Box K on the form.(assuming rest of form has been completed correctly wrt debts,etc.)
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