I4.161AA Cumulation, tax rate and allocation of liability―examples
Examples of cumulation, tax rate and allocation of liability
Example 1—basic cumulation on death
T died on 1 January 2020 with an estate valued at £300,000. By his Will T left £80,000 free of tax to his daughter D, the residue of the estate to be divided equally between his wife W and his son S.
In addition to using his annual exemptions, T had made the following lifetime gifts:
1 February 2012 a chargeable transfer to a family discretionary trust, £100,000.
1 May 2014 a chargeable transfer to a discretionary settlement, £400,000,
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