IHTM45007 - Reduced rate for gifts to charity: components of the estate: general component
The general component, IHTA84/Sch1A/Para 3(4), is made up of all the property comprised in the estate apart from:
- survivorship property (IHTM45004),
- settled property (IHTM45005) and
- any property subject to a reservation of benefit (IHTM45006)
In the most cases, the general component will include the deceased바카라 사이트™s free estate and any joint property owned as tenants in common. It will also include any property over which the deceased had a general power of appointment, IHTA84/S5(2), and property subject to a nomination.
All property, other than that excluded above, must be added together to establish the value for the general component as a whole for the purposes of the charitable giving condition (IHTM45002).
Where the deceased바카라 사이트™s Will does not include a legacy to charity, or where a legacy is not sufficient for the general component to pass the 10% test, it is open to the beneficiaries of the estate to execute an Instrument of Variation (IoV) (IHTM35011) to make or increase a charitable legacy so that the estate can benefit from the reduced rate.
Sometimes, such a variation may simply sever a joint tenancy (IHTM15081) with the result that the joint property passes under the deceased바카라 사이트™s Will. IHTA84/Sch1A/Para 3(2) says that the survivorship component includes all the property comprised in the deceased바카라 사이트™s estate that, immediately before death was liable to pass by survivorship. For this reason this type of variation does not result in the severed property 바카라 사이트˜switching바카라 사이트™ to the general component. You should continue to include the joint property in the survivorship component for the purposes of the 10% test.
Similarly, where the Will does not include a legacy to charity or the legacy is insufficient, the trustees of a relevant property trust created by Will may, where the class includes charitable beneficiaries, make a distribution from the trust (IHTM35181) to the charity so that the estate can benefit from the reduced rate. Such a distribution must be made within 2 years of death and before an interest in possession has subsisted in the property.