Inheritance tax when a beneficiary lives abroad

grannyHi

If there are three beneficiaries named in a  will and one lives in Australia, will the two that live in the uk only pay tax on two thirds of the estate as the tax is not payable in Australia ? This would likely exonerate them from paying the tax as it would be a lesser amount.

Torry_Quine

Beneficiaries don't pay inheritance tax.  It is paid on the estate .

Ayr_Rage

Torry_Quine said:

Beneficiaries don't pay inheritance tax.  It is paid on the estate .

IHT is paid BY the estate.

The 3 beneficiaries will get equal shares (or whatever the will specifies) of the net estate.

tetrarch

There is a current thread 

https://forums.moneysavingexpert.com/discussion/comment/81620043#Comment_81620043

Which mentions tax on legacies in Australia and someone suggestion of a DoV to a grandchild to avoid the charge

This sounds like a "them" problem rather than a "you" problem

Regards

Tet

DancingBadger

As has already been stated, IHT is paid by the estate; the tax situation of the beneficiaries is irrelevant.

grannyHi

Thanks everyone. I was being hopeful.