Executor's Loan

Drawlbag

I will need to get an executor's bridging loan for approx. £180k to pay my half of my father's Inheritance Tax bill later this year.
Can anyone recommend a reputable company or high street bank that provides one.
I have asked a couple of banks (incl. Lloyds and TSB) and they could not help.
I have at least that much equity in the house I live in but am on quite a low income.

[Deleted User]

I've been going through the same and generally no one appears to want to lend for inheritance tax at the moment.

As a result, my solicitors have negotiated with HMRC to pay on distribution of assets.

Drawlbag

Thankx zx81
I'm not using a solicitor but I was going to try to negotiate with them myself.
Most of the assets are in various LSE shares.
It's a ridiculous situation but at least I don't have to wait to sell property, I should be able to sell some shares quickly.

System

If they're shares then why do you need to get a bridging loan to settle the inheritance tax bill? Shares can be sold and the money in your bank in a couple of days. There is absolutely no reason to pay the high interest rate and therefore amount you would on a bridging loan.

macman

Pedant's Corner: it's not your half of the IHT bill. The entire bill is owed by the estate, and if you are the sole executor, then it's your responsibility to ensure all of it is paid before any distribution of assets.

Drawlbag

Tarambor IHT has to be paid before I can get probate, shares can't be sold until then.
Macman, my sister and I are joint executors

Thrugelmir

Should be possible to make an on account payment for IHT from whatever cash balance(s) is held within the estate. Money being paid directly across.

HMRC will advise you of the amount they require in order to grant probate.

MovingForwards

Stocks / shares etc can be sold to pay IHT, you just need to ask the company, complete the forms they ask you to and give them a copy of the form showing how much is to be paid, the reference number and how / where to pay it to HMRC.

Ben8282

If £360K inheritance tax is payable then the estate must be substantial. I am surprised that a solicitor is not involved.
The question that immediately springs to mind is how do you intend to repay the £180K loan?
You do not have to pay this tax before you can sell the assets of the estate. If you will need to sell them in order to repay the loan then sell them now and be done with it.
I also recall from some time back when my grandparents passed away that inheritance tax can be paid in instalments.
Perhaps you should seek the advice of a solicitor especially considering the value of the estate.

Drawlbag

The estate is large but straightforward, no need to involve a solicitor.
There is no cash in the estate, all the value is in various shares and a bungalow.
I require Grant of Probate to transfer title of the shares and IHT has to be paid first, to get Probate, that's why I need a loan.
I will contact the share registrars to see if they will sell and pay direct to HMRC.
That would solve the problem.
Thanks for your help.