Why even wealthy clients face estate liquidity gaps
Inheritance tax needs to be paid before probate is granted. For clients without access to liquid funds – even those with multi-million-pound estates – that can be a problem.
Estate Liquidity
How to pay Inheritance Tax before probate
Inheritance Tax is paid before probate by either using your own funds, HMRC-approved referrals or taking out a specialist loan.
What if you can’t pay your Inheritance Tax bill?
If you can’t pay your Inheritance Tax (IHT) bill by the deadline, HMRC will charge interest on the outstanding amount from the due date.
Can I get an Inheritance Tax bridging loan?
Yes, you can get a bridging loan to help you pay Inheritance Tax (IHT). These loans are designed to cover IHT, which is due within 6 months.
Paying inheritance tax in instalments – what you need to know
You can pay Inheritance Tax in instalments over 10 years if you owe tax on illiquid assets. However, but you will be charged interest.
How and when to pay Inheritance Tax
Paying Inheritance Tax (IHT) is very important. HMRC has strict deadlines, and these can be before money from the estate is released.
How to reduce your Inheritance Tax bill
You can legally reduce your Inheritance Tax bill through gifting, using trusts, and understanding your tax-free allowances.
What is estate planning?
Estate planning is the process of deciding how your assets, like property, money and investments, will be distributed after you pass away.
Do beneficiaries pay Inheritance Tax in the UK?
No, beneficiaries don’t pay Inheritance Tax in the UK. Inheritance Tax is paid by the executor of the estate of the person who has passed away.
How much of an estate do you get tax-free?
In the UK, you can pass on up to £325,000 of your estate tax-free, and in some cases, this goes up to £500,000 if you leave your home to children or grandchildren.
