Inheritance tax on underage grandchild ?

R

rabbit

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Suppose a grandparent passes away and leave estate valued say 500 k to her child and estate worth say 30 k to that childs child. ( the deceased's grandchild, age 4 ). The middle generation looks after the grandchilds inheritance until the grandchild is the age of 18.

The question is, is tax payable on the 30 k , as it would be if the middle generation inherited 530 k ?

I know the threshold is something like 500k for a parent and 40 k for a grandchild. Thanks in advance for any reply.
 
It depends on the provisions in the will. If money is held on trust for grandchild then the gift is the grandchilds, if it is an informal arrangement the revenue will certainly take a closer look .
 
ramble said:
It depends on the provisions in the will. If money is held on trust for grandchild then the gift is the grandchilds, if it is an informal arrangement the revenue will certainly take a closer look .
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its in the will, so thanks for your reply
 
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