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PS If I had been advising the executors, and subject to its legality, I would have advised the parties to let the charities have the whole of the estate, but then pass on one half to the daughter. There would then have been no IHT payable, the charities would have received £250,000 and the daughter £250,000 all free of IHT. The IHT saving would have been c. £75,000 which would have gone some way to funding the compromise.

And at least everyone would have got something. What I find ridiculous is that charitable gifts are deemed to come from the first £325,000 of the estate, which is exempt anyway as being the exempt amount, so no IHT benefit accrues. Barmy!