Is it the date of death or date of probate that determines the rates and allowances for IHT?
A client has a mother who has just died (father died some time ago and used up his IHT setting up a discretionary trust); given that Probate can sometimes take quite a long time to finalise the client has asked what might happen if there was a change of government to Labour before probate was granted and Labour then decided to reverse the recent increased allowances for IHT. Would it be the rules in operation at date of Probate that determined the tax payable or the rules at the date of death?
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Death also determines the date by which IHT is payable. If Probate is going to wait until we have a Labour government, I’d venture there’ll be interest on the IHT.