IHT apportionment

T died March 2018. His Will leaves his entire estate including the property which passes to his three children into a trust which bears “testamentary expenses and debts”. The estate is taxable. Is the IHT bill to be apportioned proportionately across all assets in the estate or can the property be considered exempt from IHT (at least to the value of the RNRB) by virtue of the RNRB?

Erika Whitfield
Adlams LLP

Since all assets go to the same destination I am not sure what difference it would make if IHT were attributed to some assets and not others. However in answer to your specific question, the RNRB is not deducted specifically from the residence, it is added to the general nil rate band if the estate qualifies to receive it.

Paul Davies

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