12 Inheritance Tax Flashcards
1
Q
Cumulation principle
A
on death over 7 years
PET drop after 7 years
Unless CLT in last 7 years then can go back further 7 for failed pets
2
Q
4 Lifetime gift treatment
A
1 Exempt
2 PET
3 CLT but no taxable
4 CLT which is taxable
3
Q
Some Examptions
A
Annual Allowance Small Gift Allowance Normal Expenditure Habitual Wedding
4
Q
PET’s to:
A
1 Another individual
2 Bare Trust
3 Disabled Trust
5
Q
CLT
A
If trustees 20%
If Setlor 25%
6
Q
Charitable Rate
A
If at least 10% net estate then tax rate 36%
7
Q
Outline Quick Succession Relief
A
QSR only relates to tax on net increase in estate of 2nd to die
Tax of increase = (tax on 1st transfer*net transfer)/gross transfer
