Marco and Liz Carvalho were married in 2005. They have two children, Pedro (22) and Albertina (19). In 2006 Marco and Liz both made valid wills leaving their entire estates to each other. The wills were not mutual wills.

5 years ago Marco and Liz went through a very acrimonious divorce. Afterwards Marco tried to have contact with both children, but they told Marco that they blamed him for the divorce and said they wanted nothing more to do with him. Marco has not seen Pedro or Albertina since the divorce.

In January 2022 Marco met Gemma Wilkie and they formed a relationship. In June 2022 Gemma moved into the house where Marco was living, Callow Meadows. In August 2023, Marco wrote out a will, a copy of which appears below. Marco and Gemma were married in December 2023. Two weeks later, whilst the couple were on honeymoon in Switzerland, Marco died in a skiing accident.

Marco is survived by Gemma, Liz, Pedro and Albertina. Pedro suffers with a disability that impacts his day to day activities and is currently unemployed. Albertina is currently studying part time for a degree in psychology and has recently had a child of her own.

Will of Marco Carvalho

THIS IS THE LAST WILL of me Marco Carvalho of Callow Meadows, Melton Mowbray dated 2 August 2023.

I give my entire estate to Gemma Wilkie

Signed by Marco Carvalho ) Marco Carvalho

in our joint presence and then by us in his)

H. Walley Y. Cooper

Harry Walley Yvonne Cooper

2 The Pines 189 Brendon Chase

Peterborough Nottingham

Note to candidates: You may assume that all the signatures above are valid. LB732 Page 2 of 5 The University of Law Limited

1. It has now been discovered that Marco also has a life assurance policy worth 100,000, which had been written in trust for the benefit of his best friend Jonathan in 2010. Marco's funeral expenses were 8,000 and his debts were 15,000.

One year before he died, Marco gifted 100,000 to his brother Antonio to help him purchase a property. Marco always used up his annual exemption in each tax year as a tax planning measure.Otherwise, Marco made no other lifetime gifts or transfers of any kind in the seven years before his death.

Explain how much Inheritance Tax is payable on Marco's death estate.