Question: Any help would be much appreciated! Herbert died on 20 July 2022. Herbert had made a payment into a discretionary trust for the benefit of

Any help would be much appreciated! Any help would be much appreciated! Herbert died on 20 July 2022.

Herbert died on 20 July 2022. Herbert had made a payment into a discretionary trust for the benefit of his grandchildren in August 2012. The gross chargeable transfer was 224,000. On 5 February 2018 he made a further payment of 155,000 cash into the discretionary trust. He made no other lifetime transfers. His estate on death is as set out below: - Herbert's house in UK worth 1,356,000 - Bank balances totalling 107,400 Herbert's funeral cost 14,000. At the time of his death he had an outstanding income tax liability of 12,400. Herbert left his entire estate to his daughter Elinor with the exception of 200,000 which he left to the local hospice (a registered charity). Requirement Calculate any inheritance tax payable as a result of Herbert's death. Total: 10 marks

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!