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Non-exempt beneficiary’s share of estate liable for IHT (Changizi v Changizi)

Published on: 16 April 2025

Table of contents

  • Case details

Article summary

Tax analysis: In the case of Changizi v Changizi and others, the English estate of a testator was left (after a deed of variation) as to 5/6 to his surviving spouse and 1/6 to his son. The executors had also paid inheritance tax (IHT) on failed potentially exempt transfers (PETs) to the son for which they had a secondary liability. There had already been considerable litigation in this case and considerable costs had been run up which had been awarded against the son. After the costs and IHT due on the failed PETs, the son was in debt to the estate before any distribution was made.

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