Relief granted

HB made a will in 2005 making her sister EB the beneficiary of a property and a residual beneficiary. HB died in 2006 and EB died in 2007.

EB’s will – made in 2005 – left the residue of her estate to four charities. The gifts should have been exempt from inheritance tax (IHT) under IHTA 1984 s 23.

But only on her death did the estate pass to the charities as a result of HB’s residue passing to EB. The gifts were therefore subject to IHT.

The claimant decided to make a deed of variation to redirect the gifts. Under s 142 such a deed would take effect as at the date of death and provide relief from IHT. Three of the charities agreed to the action but the fourth did not respond.

In the event errors with the deed...