highLight strikethrough calculator Scratchpad The following scenario relates to questions 16–20. Jeffrey died on 11 January 2023. At death his estate comprised chattels, quoted shares and cash valued at £1,580,000. Jeffrey had a life insurance policy which was valued at £250,000 on his death. The insurance proceeds paid to the executors of his estate were £375,000. At death Jeffrey owed unpaid income tax and capital gains taxes amounting to £24,000 and his funeral expenses were £7,000. On 8 September 2017 Jeffrey had made a lifetime gift of £500,000 into a trust. The tax arising was paid by Jeffrey. This was his only lifetime transfer. Jeffrey's wife, Stella, had died in June 2008. 20% of her nil rate band was unused and therefore available to be claimed by Jeffrey's personal representatives after his death. 19.If Jeffrey had not made the lifetime gift into trust and his chargeable estate on death was £2,100,000 what would be the inheritance tax payable? £840,000 £710,000 O £685,040 ○ £684,000 Nil rate bands: 2008-09 £312,000 2009-10 onwards £325,000
highLight strikethrough calculator Scratchpad The following scenario relates to questions 16–20. Jeffrey died on 11 January 2023. At death his estate comprised chattels, quoted shares and cash valued at £1,580,000. Jeffrey had a life insurance policy which was valued at £250,000 on his death. The insurance proceeds paid to the executors of his estate were £375,000. At death Jeffrey owed unpaid income tax and capital gains taxes amounting to £24,000 and his funeral expenses were £7,000. On 8 September 2017 Jeffrey had made a lifetime gift of £500,000 into a trust. The tax arising was paid by Jeffrey. This was his only lifetime transfer. Jeffrey's wife, Stella, had died in June 2008. 20% of her nil rate band was unused and therefore available to be claimed by Jeffrey's personal representatives after his death. 19.If Jeffrey had not made the lifetime gift into trust and his chargeable estate on death was £2,100,000 what would be the inheritance tax payable? £840,000 £710,000 O £685,040 ○ £684,000 Nil rate bands: 2008-09 £312,000 2009-10 onwards £325,000
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 39P
Related questions
Question
Transcribed Image Text:highLight strikethrough calculator Scratchpad
The following scenario relates to questions 16–20.
Jeffrey died on 11 January 2023. At death his estate comprised chattels, quoted shares and cash
valued at £1,580,000. Jeffrey had a life insurance policy which was valued at £250,000 on his
death. The insurance proceeds paid to the executors of his estate were £375,000. At death Jeffrey
owed unpaid income tax and capital gains taxes amounting to £24,000 and his funeral expenses
were £7,000.
On 8 September 2017 Jeffrey had made a lifetime gift of £500,000 into a trust. The tax arising was
paid by Jeffrey. This was his only lifetime transfer.
Jeffrey's wife, Stella, had died in June 2008. 20% of her nil rate band was unused and therefore
available to be claimed by Jeffrey's personal representatives after his death.
19.If Jeffrey had not made the lifetime gift into trust and his chargeable estate on
death was £2,100,000 what would be the inheritance tax payable?
£840,000
£710,000
O £685,040
○ £684,000
Nil rate bands:
2008-09
£312,000
2009-10 onwards
£325,000
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