Loan against inheritance

jenfa

Sorry for your loss.

Maybe regulations have changed since I did all the probate for my father but then I had to pay the tax before probate could be granted and that had to be paid within 6 months of him dying, it was certainly before I was able to sell his house but because my gran had died a few years before there was cash to pay it with. I think you could do something but there was interest to pay if you didn't pay it all.

At least you have a solicitor doing it although costly because the law has changed regarding transfer of the free allowance which would have transferred from your dad to your mum you shouldn't be paying inheritance tax at the single tax rate. I wish that was in for me :mad: I think I ended up paying some people's annual salary or even 2 years worth.

When my gran died that was done by a solicitor and they gave us an interim payment.

PoorCharleyBear

NdHAero wrote: »

Thank for all the advice. The estate is with the solicitors, and the properties have been valued. So the solicitors will calculate the tax implications, as that needs to be sorted before any funds are realised. I believe this can be off-set against the value of the property, and paid off over a ten year period. Neither me or my sister have any intention of selling in the near future. So post inheritance tax, I believe that the share would be about £550K each. For myself, that would be £300K in property, and the rest in cash. Yes, these are silly numbers! Equivalent to 15 years of my annual wage!

I think i will go for the partial distribution idea, and if that doesn't work, shall talk to my mortgage company and see if i can take a 'holiday'. Solicitors reckon cash will be released from the estate in about two months, so this could give me the breathing space.

Thanks again,

Having been through this a few years back...for the liquid part of the estate (cash, shares) IHT is payable before distribution.
For the house, the clock starts ticking 6 months after the month in which the person died (ie month of death is excluded).
Then you pay 10pct of the IHT on the perceived value, plus installments over the next 9 years, with interest added at 10 pct on the outstanding balance.

So HMRC get you whether you sell or not, sadly. With us they even placed a lien on my late FIL's property to ensure they got their money when it was sold.