Deceased domiciled in E&W. Will leaves everything to wife and appoints her as sole executor, however he has a share of assets in Iraq worth between 1.5 – 2 mil. These assets will pass to children under Sharia Law, so on the face of it there is an IHT liability in the region of 660k.
It’s impossible for wife to get formal valuations, value has been supplied by sister and has given a ballpark figure of all the assets, which are a mixture of shops and houses. Wonder whether shops qualify for BPR, but would need their individual values and values of stock etc. Assets can’t be sold and income from them won’t be sufficient to pay IHT.
The annoying thing is that the deceased wasn’t religious, his funeral wishes specifically states that there is to be a non-religious funeral. Wife initially thought she would be getting everything, but it is the sister in Iraq who is insisting the Iraq assets pass under Sharia law.
Unfortunately wife is in need of the UK assets and so can’t pay the IHT on the children’s behalf. I am assuming that unless children enter into a DoV they are stuck with the IHT liability. I am obtaining a copy of the Will file (not prepared by my me) to see what was discussed at the time instructions were taken.
has anyone been in a similar situation?
Rose & Rose