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A gift to a charity (IHTM11112) is not exempt if it takes effect on the termination, after the transfer of value, (IHTM04024) of any interest or period. We interpret the term ‘takes effect� to mean ‘takes effect in possession�. (IHTA84/S23 (2) (a))

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Example

Ashley dies.

By Will Ashley leaves the residue of his estate to Leonora for life, and then to a charity when Leonora dies.

IHTA84/S23 (1) does not provide exemption on Ashley’s death (though it may on Leonora’s).

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