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PLZ PLZ HELP Required: Calculate the amount of inheritance tax payable on each death and the total inheritance tax payable assuming that Lewis dies on
PLZ PLZ HELP
Required:
Calculate the amount of inheritance tax payable on each death and the total inheritance tax payable assuming that Lewis dies on 12 March 2020, and Gita dies shortly after.
Show clearly any exemptions.
You should assume that the values of the estates and the tax rates and allowances in the tax year 2019/20 remain unaltered at Gitas death, and also that all lifetime gifts are made within seven years of both deaths.
The nil rate bands for earlier tax years are as follows:
2012/13 325,000 2014/15 325,000
Lewis and Gita have three children, Peter, John and Carol. John married Joan on 20 June 2013 The market value of Lewis and Gita's assets at 12 March 2020 are as follows: Gita Main residence Building Society accounts Premium bonds Equity ISAS Lewis 550,000 145,150 27,000 125,000 Total 550,000 360,150 48,000 260,500 215,000 21,000 135,500 847,150 371,500 1,218,650 Their history of lifetime giving is as follows: Lewis Gita Date Donee Amount Date Donee Amount 20.03.13 John 24,000 15.12.14 Carol 87,000 The gift on 20 March 2013 to John was made in consideration of his marriage to Joan. Lewis and Gita have reciprocal wills which leave 85,000 comprising cash and ISA's to each of their children, with the residue to each other on the first death and everything to the children in equal shares on the second death. Lewis and Gita have three children, Peter, John and Carol. John married Joan on 20 June 2013 The market value of Lewis and Gita's assets at 12 March 2020 are as follows: Gita Main residence Building Society accounts Premium bonds Equity ISAS Lewis 550,000 145,150 27,000 125,000 Total 550,000 360,150 48,000 260,500 215,000 21,000 135,500 847,150 371,500 1,218,650 Their history of lifetime giving is as follows: Lewis Gita Date Donee Amount Date Donee Amount 20.03.13 John 24,000 15.12.14 Carol 87,000 The gift on 20 March 2013 to John was made in consideration of his marriage to Joan. Lewis and Gita have reciprocal wills which leave 85,000 comprising cash and ISA's to each of their children, with the residue to each other on the first death and everything to the children in equal shares on the second deathStep by Step Solution
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