As executor, Im preparing the IHT return for an estate, which includes a charitable gift valued above the qualified minimum 10% of estate.
The estate components are (in round figures):
House £238000
Bank & Investments £260000
House contents £2000
In addition to the above there is an art collection (auctioneer valued at £20000) which is to be liquidated and donated to the local hospice.
Heres my question:
a) Do I just enter the value of the £20000 charitable donation in the relevant IHT box or,
b) Do I have to first add £20000 to the house contents (raising that to £22000) and then enter the £20000 charitable donation in the relevant IHT box.
IHT using method a) equals £62000, whilst IHT using method b) equals £70000 - quite a difference.
Adding £20000 to the estate value when its actually being given away does not seem logical to me - but then, I find that not unusual when it comes to any HMRC form.
Id be grateful for any advice.
The estate components are (in round figures):
House £238000
Bank & Investments £260000
House contents £2000
In addition to the above there is an art collection (auctioneer valued at £20000) which is to be liquidated and donated to the local hospice.
Heres my question:
a) Do I just enter the value of the £20000 charitable donation in the relevant IHT box or,
b) Do I have to first add £20000 to the house contents (raising that to £22000) and then enter the £20000 charitable donation in the relevant IHT box.
IHT using method a) equals £62000, whilst IHT using method b) equals £70000 - quite a difference.
Adding £20000 to the estate value when its actually being given away does not seem logical to me - but then, I find that not unusual when it comes to any HMRC form.
Id be grateful for any advice.