I have an Estate where there are insufficient funds in the residuary estate to meet the IHT and administration expenses in full. The balance of IHT/expenses will need to be deducted from the proceeds of a sale of a property. The property was gifted in various shares to individuals and charities.
I assume IHT payable from the property sale proceeds would not be deducted from the charities’ shares.
In calculating how much IHT needs to be paid from the property sale proceeds, is there any order of priority between the IHT and admin expenses? If all of the non-property funds are used to pay towards the IHT it then reduces the amount of IHT deducted from the individuals’ shares. If the admin expenses are met in full from the non-property funds it increases the IHT being deducted from the individual’s shares.
Samir Hussain
Gregsons