From: "Robert" 
Newsgroups: uk.finance
Subject: Re: Assigning property income to my partner
Date: 11 Dec 2006 01:11:08 -0800
   posting-account=wea8Vg0AAACWFrs1xUCYLe2RbiaiU7wT


Robert wrote:
> google@woodall.me.uk wrote:
> > Robert wrote:
....> > What would happen if say, A gave everything to B who then gave
> > everything to C. A then dies. Presumably B now has the IHT liability
> > but has no assets to pay it and just declares themselves bankrupt. Or
> > can the tax office chase C?
.
> A's estate pays the tax.  So A's executors would pay it from whatever
> money A had not given away.

I should have been more precise.  A's executors have to pay the tax
BEFORE they they get probate.  So they cannot, initially, use the
assets of the estate to pay the tax.  They have to borrow this money
form somewhere, pay the tax, then get probate, then sell the assets and
then pay back the loan.   

Robert