Dorothea died on 28 January 2021 leaving her entire estate to her daughter Stephanie. At the date of her death, Dorothea’s estate was valued at £1,500,000 which included her house with a market value of £800,000. During her lifetime Dorothea made the following gifts: December 2011 Cash of £280,000 to a discretionary trust May 2018 Cash of £227,000 to a discretionary trust Dorothea settled any lifetime tax due on the gifts to the discretionary trusts. Requirement
Calculate the inheritance payable as a result of Dorothea’s death in January 2021. Show the treatment of each gift assuming that all benefit claims and elections are made.
