Use of bridging loan to settle IHT account
Sadly my Uncle passed away early this year and left my Dad and I as joint executors. Upon valuing his estate, it became clear the total value would be over the IHT limit and some tax would be due to be paid. As we're doing it ourselves, we're letting HMRC calculate the final value for us but will be circa £70k. We are not in a position to pay this out of our own pocket, and he only left around £4k as cash in a bank account.
The estate is a simple one of only a bank account, S&S ISA and share certificates. As I understand it we can't sell any shares to pay for the IHT until Probate is granted and I read about getting a bridging loan to pay for the amount and repay once probate is granted. Has anyone had any experience of this and potentially advise of any suitable lenders? Or is there any way we could get probate granted before settling the IHT? I don't think instalments are an option as property isn't part of the estate.
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I received advice yesterday from the solitons we are employing.
We are nearly 5 months into the process
Once we have agreed their draft,we will all wet sign IHT 400 and this will then be submitted
We will also wet sign instructions to the investment managers to realise at a minimum the amount required to make a payment on account sufficient to avoid interest
The solicitors will provide this to the investment managers together with an instruction for them to pay HMRC directly ( IHT 423)
Unlike property,liquidation of investments does not require transfer of ownership to a third party,so I have always been of the understanding that we do not require probate to sell investments into cash on behalf of the estate,prior to grant of probate.