inheritance tax and instalments

iamtommy · 16 February 2019 at 10:29PM

Hi All,

I am the executor of the will, and have two siblings.

Have been stung with a 200k inheritance tax bill (across 3 properties) which need to be paid before probate can be granted.

I understand you can take out a loan over 10 years and pay it back with interest, will doing this allow probate to be granted, so I can dish the other two properties out to my siblings?

Who would have to pay back the IHT loan over the 10 years? Can it be drawn up so that me and my siblings have to pay it back equally and i don't get screwed being left with it all (i dont trust my siblings)?

Thanks,

BoGoF · 16 February 2019 at 10:37PM

You would be best posting this on the 'cutting tax' board.

iamtommy · 16 February 2019 at 10:44PM

ok thank you

Keep_pedalling · 16 February 2019 at 10:46PM

Personally I would sell up and pay off the bill ASAP.

As there is not enough other assets in the estate then it has to come out of the properties. As you realise taking out a loan then destributing the estate is full of risks and as executor you have no obligation for you to do so. If any of your siblings are desperate to hang on to the property that has been left to them then get them to pay their share of the inheritance into the estate, if they can’t do that then they will have to take the cash after their property is sold.

inheritance tax and instalments

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