I am dealing with the administration of an estate whereby he had a life interest in half of a property by his late wife who predeceased him in 1980s. I understand that the trust is aggregated with his free estate in order to calculate IHT. I understand that NRB/TNRB/RNRB/TRNRB are then applied and the tax liability is apportioned between the trust and the estate. Please can someone tell me that is correct and let me know how the liability is apportioned? Is it simply based upon the value in the trust (i.e., the half share of property) divided by the value of the trust and free estate x by the liability?
Presumably then the trustees are liable for the tax on behalf of the trust?
Thanks for your help