IHT who pays?

Are you involved in sorting out somebodies’ life after they have passed away?

If you are not familiar with IHT then it is the acronym for Inheritance Tax. It is always the estate that pays any inheritance Tax bill that may be due after somebody passes. However, the person responsible for this payment on your estate’s behalf is either your Executor if you have a Will or the Administrator of the estate if you do not have a Will. These people are authorised to use available funds to pay inheritance tax bills on behalf of your estate.  If no funds are available to pay inheritance tax due because the funds are tied up in property then the Executor or administrator of the estate has a range of options. Take out an Executor loan make the first payment from the funds available and agree an instalment plan with HMRC.  Pay the bill themselves and get the money back from the estate when the funds are available.   If you think you are going to be in this position and would like to know more about each option then give us a call.