Malcolm, thank you this is v. helpful. Would this “formula” however still apply if say the ‘free estate’ of the deceased were only £500,000 (and therefore within the NRB/RNB)? i.e. would IHT still be payable from the free estate or borne solely by the trust?
I am looking at IHT against free estate - #2 by paul where the residue is exempt due to spousal exemption, but cannot find guidance / authority on whether a parallel is drawn where the ‘free estate’ is within the NRB (so no chargeable estate and only chargeable by virtue of the trust being aggregated).
Many thanks in advance