IHT - Liability and Burden Flashcards
Who pays IHT for LCT at time of transfer?
Trustee – donor is secondarily liable.
Who pays IHT for failed PET?
Recipient of gift – PR is secondarily liable.
Who pays IHT for LCT reassessed?
Trustees of trust – PR is secondarily liable.
Who pays IHT on death estate?
PRs of the estate.
Who pays IHT on jointly owned property (joint tenants)?
Surviving co-owner.
Who pays IHT on gifts with reservation of benefit?
Recipient of gift – PR is secondarily liable.
Who pays IHT on trust assets?
Trustees.
Who pays IHT on assets passing outside the free estate?
The recipient.
What are examples of assets passing outside the free estate?
1) Joint tenant property
2) Statutory nominations
3) Deathbed gifts
4) Trust assets
5) Gifts with reservation of benefit.
Who is typically liable for paying IHT on free estate?
The PR – but testator can direct burden elsewhere.
What happens if the will says ‘gift subject to tax’?
The recipient bears the tax.
