Who pays IHT?

goingcrazy101

We can't contest it until we have seen it, but if it is as we have been told, we will. Unless it is in trust etc. as we would potentially loose all our Grandparents/dads collectables etc that hold sentimental value to us but nothing to her.

t0rt0ise

Ben_Fogles_Dog wrote: »

Just wanted to note that it is possible she paid the IHT. It has to be paid in advance in order for probate to be obtained and as there is no access to the estate until probate is obtained this has to be met from elsewhere (your own savings or a loan) - could this be what she is referring to?

That’s not correct. I dealt with my mother’s affairs and the IHT was paid out of a savings account she had. There’s a form you use with the other probate forms to do this.

If there is no cash in the estate to pay then you only need pay a little up front and the rest later, say when the house is sold. After a certain length of time (six months I think) they charge interest which is an incentive to get things done quickly.

For complete information, it’s the same with the funeral costs. They can be paid from the deceased’s account.

troubleinparadise

Ben Fogle’s Dog: just wanted to note that it is possible she paid the IHT. It has to be paid in advance in order for probate to be obtained and as there is no access to the estate until probate is obtained this has to be met from elsewhere (your own savings or a loan) - could this be what she is referring to?

t0rt0ise wrote: »

That’s not correct. I dealt with my mother’s affairs and the IHT was paid out of a savings account she had. There’s a form you use with the other probate forms to do this.

If there is no cash in the estate to pay then you only need pay a little up front and the rest later, say when the house is sold. After a certain length of time (six months I think) they charge interest which is an incentive to get things done quickly.

For complete information, it’s the same with the funeral costs. They can be paid from the deceased’s account.

Tortoise - BF’s Dog wasn't totally incorrect - there are several ways to pay IHT, depending on the estate, which can be directly from an estate’s bank and/or building society account before Probate is granted. I paid using a family loan, which was repaid very quickly after Probate was granted. There isn’t always a house to sell; but if there is that can be a solution as you have said.

Ditto with the funeral costs - if there are insufficient funds in the deceased’s account then payment may have to wait for Probate to access further monies, or as I did as Executor, pay some myself and reclaim later.

It all depends on the particular estate and what it comprises - luckily there are several ways to sort things out, although it is all a headache in my view!

Ben_Fogles_Dog

t0rt0ise wrote: »

That’s not correct. I dealt with my mother’s affairs and the IHT was paid out of a savings account she had. There’s a form you use with the other probate forms to do this.

If there is no cash in the estate to pay then you only need pay a little up front and the rest later, say when the house is sold. After a certain length of time (six months I think) they charge interest which is an incentive to get things done quickly.

For complete information, it’s the same with the funeral costs. They can be paid from the deceased’s account.

Sorry, I should have been clearer, it is possible that there are no significant savings available to draw the IHT from i.e. most of the capital being in the property). As you say it can be paid in installments but I believe that they are then subject to interest.