Scenario:
Mirror wills with equally divided estate …Residence =£210k + Investments =£360k = Total =£570k.
ie each spouse with estate = £570k (joint estate = £1140k)…Tenants in Common.
Will instructs Benificieries to receive a total of £140k at first death….with remainder going to surviving spouse.
1. Am I correct in thinking that on first death there would be no IHT due,and IHT allowance passed to surviving spouse would be reduced by £140k to £360k?….allowance available for surviving spouse is now £860k….no PETS.
2. The estate value becomes £1140k - £140k = £1000k….and If second death occurs soon after with the estate distributed to a number of beneficiaries.,this distribution cannot take place until IHT of (£1000k-£860k)x0.4 = £56k has been paid…Is this correct?
3. If £56k is correct, does this come from estate?,leaving £944k to be distributed?..ignoring expenses and no PETS.
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