What about IHT payments when an estate is in dispute?

Slumbershade
Slumbershade Posts: 667
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edited 12 November 2023 at 5:11PM in Deaths, funerals & probate
Unfortunately we have encountered one several years after we thought the estate was settled. Some IHT has already been paid yearly.
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  • SiliconChip
    SiliconChip Posts: 1,281
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    I think you're going to have to expand on that, because what you've said gives us no chance of providing a meaningful answer.
  • After 6 months since the estate's previous "owner" has died inheritance tax is liable to be paid. If its not paid immediately it can be spread out annually over 10 years. So are those payments still liable now that the estate is heavily in dispute? 
  • Nearlyold
    Nearlyold Posts: 2,236
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    What do you mean by in dispute? Are HMRC challenging something or you talking about a family dispute over who gets what?
  • user1977
    user1977 Posts: 13,360
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    HMRC are not going to be interested in a dispute among the beneficiaries/executors, if that's what you mean. They'll expect IHT to be paid within normal timescales - what happens to the estate after that is up to everybody else to sort out.
  • Kim_13
    Kim_13 Posts: 2,223
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    Wouldn’t it depend on what is in dispute? If it is a challenge to a will, it would usually make no difference. The value of the estate is the value of the estate, and the rate of IHT is 40% above the relevant threshold. With the estate in dispute it’s likely an administrative nightmare, trying to get the payments from the beneficiaries in a fair way several years down the road (who may have realised that it will be the executors that HMRC will chase) but if the tax is due that’s that.
  • Kim_13 said:
    Wouldn’t it depend on what is in dispute? If it is a challenge to a will, it would usually make no difference. The value of the estate is the value of the estate, and the rate of IHT is 40% above the relevant threshold. With the estate in dispute it’s likely an administrative nightmare, trying to get the payments from the beneficiaries in a fair way several years down the road (who may have realised that it will be the executors that HMRC will chase) but if the tax is due that’s that.
    Currently there is no executor... I think. It's very confusing. But we may not know who should be paying IHT in a few months, in fact I may be owed money from what I have already paid, although it is unlikely. A nightmare does not even begin to describe this situation, I guess Ill find out when its close to due for sure when I tell them heh.
  • Currently there is no executor... I think. It's very confusing. But we may not know who should be paying IHT in a few months, in fact I may be owed money from what I have already paid, although it is unlikely. A nightmare does not even begin to describe this situation, I guess Ill find out when its close to due for sure when I tell them heh.
    The estate pays IHT
  • Malthusian
    Malthusian Posts: 10,838
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    Currently there is no executor... I think. It's very confusing.
    If there's no executor, who paid the IHT instalments? 
    They may have "intermeddled" and landed themselves with the job.
  • Kim_13 said:
    Wouldn’t it depend on what is in dispute? If it is a challenge to a will, it would usually make no difference. The value of the estate is the value of the estate, and the rate of IHT is 40% above the relevant threshold. With the estate in dispute it’s likely an administrative nightmare, trying to get the payments from the beneficiaries in a fair way several years down the road (who may have realised that it will be the executors that HMRC will chase) but if the tax is due that’s that.
    Currently there is no executor... I think. It's very confusing. But we may not know who should be paying IHT in a few months, in fact I may be owed money from what I have already paid, although it is unlikely. A nightmare does not even begin to describe this situation, I guess Ill find out when its close to due for sure when I tell them heh.
    On your other thread you say you are an executor!

  • Dave_5150 said:
    Currently there is no executor... I think. It's very confusing. But we may not know who should be paying IHT in a few months, in fact I may be owed money from what I have already paid, although it is unlikely. A nightmare does not even begin to describe this situation, I guess Ill find out when its close to due for sure when I tell them heh.
    The estate pays IHT
    Yes, thanks. I thought that would be the most likely thing, just checking.
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