A wants to make a lifetime gift of £325,000 to B.
A is concerned that if she dies soon after the gift to B leaving her estate of £1m to C and D, her nil-rate band is exhausted by the lifetime gift to B.
C and D would suffer IHT at 40% on the full estate as no nil-rate band.
A wants advice on how to protect her estate being prejudiced by the gift to B.
Could B give A’s estate/executors/beneficiaries an indemnity to pay them the loss which would be 40% of £325,000 as taper relief is not engaged.
Would this fall foul of the GROB rules as it is a gift with a condition?
How do other practitioners deal with this scenario which can’t be uncommon, albeit it only arises as B is different to C and D.