Two sisters, H and E, both had Wills. E was a beneficiary of H’s Will. E’s Will left the residue of her estate to four charities. H died in February 2006, and E died in September 2007. The inheritance tax (IHT) initially calculated on H’s estate was £254,595.
The combined effect of the two Wills was that assets passed first to E on H’s death, and only on E’s death did these pass to the charities. The gifts which ultimately benefited the charities therefore attracted IHT, albeit indirectly.
A deed of variation was therefore executed by the claimant in November 2007, to take advantage of IHTA 1984, s 142 by redirecting E’s entitlement under H’s Will to the charities. The intended effect was that the redirected gifts would be subject to the exemption from IHT for gifts to charity (under IHTA 1984, s 23), and the sums otherwise due by way of IHT would accrue to the four charities under&
