I am familiar with the concept of Potentially Exempt Transfers (PETs) which become fully exempt from IHT provided the donor survives for 7 years.
But what happens if the 'donor' is a married couple - with no defined
apportionment of the gift between partners - and one survives for 7
years and the other one doesn't?
Is 50% deemed to have come from the deceased partner, and thus liable
for IHT, or maybe causes a reduction in the amount of unused allowance
that can be transferred to the other partner, or what?
- posted 7 years ago