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Thanks for your question. The value of the estate for IHT is calculated by taking the gross estate and deducting debts and funeral expenses. Then the IHT is calculated having regards ***** ***** NRB and RNRB. The IHT is paid. Then the specific monetary legacies are paid. Then the residue is divided. I hope that helps. Please leave a positive rating so that I am credited for my time.
What that clause means is that the specific legacies are free from taxes insofar as the beneficiaries receive the money without deduction of tax but the estate has to pay the taxes due on the total amount of estate, less allowable deductions.
The unused portion of the RNRB can be carried forward. A deed of variation can only be signed with the consent of all of the affected beneficiaries. As regards ***** ***** becoming administrator, an administrator is someone appointed to deal with an estate where there is no will and no executors. That is not the case here and there would appear to be no reason for an administrator.
The RNRB may be lost where the property is placed into a discretionary trust for the benefit of children. However some trusts will not result in a loss of the allowance. If the trust gives the child an absolute interest in possession in the home the RNRB can still be claimed. A Bereaved Minor Trust, an 18 to 25 Trust and Disabled Persons Trust will also retain the RNRB.
Yes you can. And you should ask what kind of trust the other half is held in as that will make the tax position clearer.