Grossing Up - Intestacy with Spousal Exemption

Trusts Discussion
1

I’m acting in a intestacy, where the deceased left a (second) wife and children (from first marriage).
We are following the Rules of Intestacy, and as the estate is valued at over £2m, there will be legacies to the children and IHT to pay.

Does grossing up apply to this scenario?

Who is liable to pay the tax - do all beneficiaries receive net legacies with their proportionate amount of IHT, or just the children?

I’m sure this is a simple question, but cannot get a clear answer from HMRC guidance online

2

My understanding (as per Re Ratcliffe) is that the spouse receives her share under the intestacy rules free of tax and the children’s share is subject to tax, so there is no grossing up.

Ihsan Ali
I Will Solicitors Ltd