Yeah, I've heard two different versions:
a)If the beneficiary dies pre-dismemberment (no idea if these are the proper terms) their share of the estate 'jumps' to whoever is next-in-line based on my grandfather's will. This would clearly be ideal since his estate is nearly wound up and would therefore not get taxed twice
b)what they stood to inherit becomes part of their estate and is treated exactly as if they received it before dying. I wasn't aware a dead person could inherit anything though, maybe it depends where the solicitors had got to.
However I also came across mention that you can apply for relief when there is a very short gap between deaths on grounds HMRC have already had "their bite of the cherry".
Conflicting advice even from people who work in this area so far! As mentioned, my mother inherited my father's tax-free allowance because spouses get special exemptions. That (~600k) is what her estate is roughly worth before grandfather's estate is taken into account. His estate attracted a small amount of tax when going to her, which means ALL of it would be taxed at 40% potentially.
a)If the beneficiary dies pre-dismemberment (no idea if these are the proper terms) their share of the estate 'jumps' to whoever is next-in-line based on my grandfather's will. This would clearly be ideal since his estate is nearly wound up and would therefore not get taxed twice
b)what they stood to inherit becomes part of their estate and is treated exactly as if they received it before dying. I wasn't aware a dead person could inherit anything though, maybe it depends where the solicitors had got to.
However I also came across mention that you can apply for relief when there is a very short gap between deaths on grounds HMRC have already had "their bite of the cherry".
Conflicting advice even from people who work in this area so far! As mentioned, my mother inherited my father's tax-free allowance because spouses get special exemptions. That (~600k) is what her estate is roughly worth before grandfather's estate is taken into account. His estate attracted a small amount of tax when going to her, which means ALL of it would be taxed at 40% potentially.
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