Specific gift without inheritance tax becoming payable

Trusts Discussion
1

I have the following clause in a Will:

'5. Specific Gift. I give the following bequests equal to the maximum amount which can be given without inheritance tax becoming payable:

40 % to child A;

40% to child B;and

20% to grandchild.’

This is a second death gift and full TNRB and TRNRB is available as well as the Testator’s NRB and RNRB. Will this gift be £1million or just the nrb amounts of £650,000?

2

My initial view is that the git would be limited to a maximum of £650,000.

However, if the deceased’s estate was entitled to claim RNRB downsizing allowance, I believe this may enhance the value of this gift as it is represented by a cash value rather than the gift of property.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals