NS&I trust account

GeorgianCottage

As Executor to my elderly father, I am trying to plan for the moment IHT has to be paid but probate has not been granted. I had thought there was some way of setting up a “trust” account with NSI which doesn’t count towards estate valuation for IHT and also can be used for the IHT payment. But I cannot now find this. Or is there another way of putting cash aside for that purpose alone?Any ideas? Many thanks.

Savvy_Sue

GeorgianCottage said:

As Executor to my elderly father, I am trying to plan for the moment IHT has to be paid but probate has not been granted. I had thought there was some way of setting up a “trust” account with NSI which doesn’t count towards estate valuation for IHT and also can be used for the IHT payment. But I cannot now find this. Or is there another way of putting cash aside for that purpose alone?Any ideas? Many thanks.

I may be being dense, but I cannot see a way of identifying money to be used for the IHT payment which takes it out of the total value of the estate for IHT purposes. 

And again, I may be being dense, but I cannot think of a reason to ring fence money for IHT. 

HMRC don't care where the money comes from, they just want the money. 

I believe there are ways of paying HMRC direct from some kinds of account (and I'd compare that to settling the funeral bill from the deceased's account directly), but I'm not sure of the details. 

If I've missed something, please say! 

Keep_pedalling

Anything put in trust now would require him to live another 7 years for it to fall out of his estate.

Do you have an idea of his current net worth? What is his marital l status.

Flugelhorn

Savvy_Sue said:

I believe there are ways of paying HMRC direct from some kinds of account (and I'd compare that to settling the funeral bill from the deceased's account directly), but I'm not sure of the details. 

there is now a way of paying the IHT directly out of one of the deceased's accounts - ie you don't have to wait for probate to get the money or possibly having to take a loan to get probate to get the money - need form IHT423 for the direct payment scheme

madbadrob

Flugelhorn said:

Savvy_Sue said:

I believe there are ways of paying HMRC direct from some kinds of account (and I'd compare that to settling the funeral bill from the deceased's account directly), but I'm not sure of the details. 

there is now a way of paying the IHT directly out of one of the deceased's accounts - ie you don't have to wait for probate to get the money or possibly having to take a loan to get probate to get the money - need form IHT423 for the direct payment scheme

Why would you pay IHT before probate?  If the house is whats pushing the estate to the IHT threshold would it not be better to wait until the sale takes place so that the true value of the estate is known and not an estimate?  once paid you cant claim it back

Keep_pedalling

madbadrob said:

Flugelhorn said:

Savvy_Sue said:

I believe there are ways of paying HMRC direct from some kinds of account (and I'd compare that to settling the funeral bill from the deceased's account directly), but I'm not sure of the details. 

there is now a way of paying the IHT directly out of one of the deceased's accounts - ie you don't have to wait for probate to get the money or possibly having to take a loan to get probate to get the money - need form IHT423 for the direct payment scheme

Why would you pay IHT before probate?  If the house is whats pushing the estate to the IHT threshold would it not be better to wait until the sale takes place so that the true value of the estate is known and not an estimate?  once paid you cant claim it back

IHT needs to be paid within 6 months of death and you won’t get a grant of probate until it is paid or, if paying by instalments, the first instalment is paid.

Flugelhorn

madbadrob said:

Flugelhorn said:

Savvy_Sue said:

I believe there are ways of paying HMRC direct from some kinds of account (and I'd compare that to settling the funeral bill from the deceased's account directly), but I'm not sure of the details. 

there is now a way of paying the IHT directly out of one of the deceased's accounts - ie you don't have to wait for probate to get the money or possibly having to take a loan to get probate to get the money - need form IHT423 for the direct payment scheme

Why would you pay IHT before probate?  If the house is whats pushing the estate to the IHT threshold would it not be better to wait until the sale takes place so that the true value of the estate is known and not an estimate?  once paid you cant claim it back

because you have to pay some IHT before you can get probate