Exempt Beneficiaries and Qualifying Assets Flashcards
When is spouse exemption lost?
If no longer married at death
What is a good way to reduce IHT with gifts of qualifying assets?
Rather than giving qualifying assets to spouse (i.e. Business Property Relief), you should give it to another beneficiary.
What is a gift to discretionary trust?
Qualifying asset can be gifted to trust (non-exempt), which can claim qualifying asset relief.
Spouse can be a trust beneficiary and benefit from asset without owning it.
What happens if qualifying assets fall in residuary estate?
Relief is apportioned between taxable and exempt beneficiaries.
When is relief partially / completely wasted?
If residuary estate passes to exempt beneficiary (e.g. spouse) and specific gifts of non-qualifying asset are made to exempt beneficiaries.
