Sorry if I’m being thick, but I’m having a senior moment.
Husband dies leaving an estate of £1M in a life interest trust for his (second) wife and then on her death to a charity.
Upon wife’s subsequent death, her estate is worth £100,000.
The total taxable estate is therefore £1.1M with the Life Interest Trust being aggregated with her estate.
After deduction of both IHT allowances (ignoring the residential allowance for this question), this leaves a chargeable estate of £450,000. IHT at 40% giving a IHT liability of £180,000.
Who pays this IHT?
davies and partners