IHT help

poppystar

slightly off topic …but good to know others have had the same house dilemma! In my advanced years I understand totally how someone can easily end up living in less than ideal conditions while having money in the bank. The stress of moving or the stress of having to move everything out for work to be done and the stress of dealing with builders, plumbers etc etc. aargh!

naedanger

Are you the executor of the estate?

Also are you certain the will is worded such that your share is due to pay all the IHT? Is it clear your inheritance was the residual estate consisting of only the house less all other debts of the estate?

Ultimately you personally don't need to provide the estate with a loan. And if you don't provide a loan then the estate will need to obtain the loan from another party or if one cannot be obtained then the charities will need to wait to receive their full legacies. 

Now if the will is worded such that all liabilities (including IHT and the costs associated with any loans) are to be borne by your share of the estate then it may be financially beneficial for you personally to lend the estate the money, but ultimately, as far as I am aware you are under no obligation to do so (even if you are the executor). 

That said I expect the solicitor to be correct, but would want more clarity on the situation before making a decision.

badmemory

My problem would be if the solicitor is the one who wrote the will in the first place.  I do hope not.

Keep_pedalling

naedanger said:

Are you the executor of the estate?

Also are you certain the will is worded such that your share is due to pay all the IHT? Is it clear your inheritance was the residual estate consisting of only the house less all other debts of the estate?

Ultimately you personally don't need to provide the estate with a loan. And if you don't provide a loan then the estate will need to obtain the loan from another party or if one cannot be obtained then the charities will need to wait to receive their full legacies. 

Now if the will is worded such that all liabilities (including IHT and the costs associated with any loans) are to be borne by your share of the estate then it may be financially beneficial for you personally to lend the estate the money, but ultimately, as far as I am aware you are under no obligation to do so (even if you are the executor). 

That said I expect the solicitor to be correct, but would want more clarity on the situation before making a decision.

As all the other beneficiaries are charities their bequests are exempt so any IHT automatically falls on the OPs bequests. 

Yes, the executor could obtain a loan to cover the IHT but the costs of that loan would come out of the OPs share of the estate.

buddy9

The Grant on credit introduced in the spring budget, if available, might be a better option than a loan.

ladyholly

Many thanks to all for your comments. I have taken them all on board and will use some of my new knowledge to push the solicitor to do what I think is correct as long as it is legal. I have learned a lot over the last few weeks but am grateful to those on here that have taken time to reply.