Inheritance Tax Group A justification

DocKS123

Can a grandmother (Mary), leave in her will a house to a grandchild (Tom), whose parent (Tom's mother - Ann) has pre-deceased the grandmother (Mary)? The child's (Tom) father (Mark) is a widow. The child (Mark) of the grandmother (Mary) is the grandchild's father. In this circumstance does the grandchild (Tom) able to fall into Group A, and have a tax-free allowance of E335K because his mother (Ann) is pre-deceased?

Does the Grandchild (Tom) now take on the mother's Group A tax-free threshold of E335k allowance and the son (Mark) of the grandmother also is entitled to Group A tax-free threshold?

Sorry if this is a bit complicated but I want to see if a grandchild of a deceased parent can be moved up to Group A to manage the tax of an estate.

Peregrinus

As the surviving spouse of Mary's deceased child, Mark is in Group A.

As Mary's grandchild Tom is in Group B, unless he is still a minor when Mary dies.

But depending on facts that you're not mentioning Tom might qualify for some relief - e.g. if the estate consists of a farm that Tom works, or of a house that Tom lives in. There are a number of reliefs, each of which has a number of qualifying conditions.

DocKS123

Mary would be Marks Mother so I think falls into Group A automatically - Tom the grandchild of Mary is still a minor, under 16 does this change things?

Peregrinus

Oh, sorry, I misunderstood. I thought Ann was Mary's daughter and Tom was Mary's son-in-law. In fact Tom is Mary's son and Ann was Mary's daughter-in-law.

The position is not so good:

Tom is in Group A because he is Mary's son.

If Mark is a still minor when Mary dies, and if Tom has also died by then, Mark will be in Group A. Otherwise he's in Group B..