I have never dealt with an estate where there has been a life interest (property) for a non spouse and there is inheritance tax to pay on the estate.
Does the life tenant pay a proportion of the IHT on the deceased’s estate because they have received an immediate post death interest (by way of the property)?
Obviously the life interest will aggregate with the life tenant’s estate on her death but wondered if she has to pay any of the IHT on the life interest to start with where IHT is payable.
On the death upon which the life interest is created, the IHT is a general testamentary expense under s.211 IHTA 1984 and, unless there is a contrary direction in the will, is payable out of the residuary estate.
If residue is insufficient to meet the liabilities of the estate, including the IHT, the usual rules of abatement will apply.