IHT and Charitys

5IVE6IX

I am in discussion as co-executor of a will, with the lawyers working the estate.

The will states

house 320000 to go to a beneficiary

a piece of furniture worth 2000 to go to a beneficiary

and the remainder of the estate - the residuary estate to go to a British Heart Foundation.

As i understand it the IHT is calculated on the net value of the estate

after the Nil Rate Band of 325000

and after the donation to the charity as charitys are exempt from tax

is this correct?

formula i

Net value of estate 467000

- minus beneficiary amount 322000 (32000 + 2000)

- minus charity amount (residuary value of estate)145000

- calculate tax on remainder minus nil rate band 325000

so 0% tax ????

Albermarle

I am not an expert, but seems to make sense, assuming the deceased was not married or a widow/widower, and their home was not left to any children.