The deceased has to bear the tax for the estate if they received
a gift of the residue.
Example
T died January 2000 leaving an estate of £450,000 - no
business relief (
IHTM25131) or agricultural relief.(
IHTM24001)
By Will, legacies totalling £200,000 free of tax to
chargeable beneficiaries, and residue to R, also a chargeable
beneficiary. Tax of £87,600 paid.
R dies in July 2001. Because all the legacies were free of
tax, R had to bear the tax on the whole estate. So the net property
taken by R was:
| Estate of | 450,000 | |||||
| Less legacies | 200,000 | |||||
| tax | 87,600 | |||||
| Net benefit | 162,400 | |||||
| The QSR calculation is: | ||||||
| 162,400 | x | 87,600 | x | 80% | = | £25,291 |
| 450,000 |
