How we have helped customers with IHT bills
Many personal representatives going through Probate and Estate Administration aren’t aware that if inheritance tax is due on an estate, they are liable to find the funding. In some cases there is enough cash in the estate to cover the IHT bill, but if not, the personal representative needs to find a way to settle the bill before probate is granted.
Here are a few stories where we have helped customers solve this problem:
Customer story: personal liability
I’m a solicitor and along with two other lay executors was responsible for administering a £2m estate. It was mainly property so when the time came to pay the IHT bill, I found myself in a position where I needed to sort it out but obviously didn’t want to become liable as the money had yet to be released.
The solution: Inheritance Tax Loan Tower Street Finance sorted out a £300k Inheritance Tax Loan which meant HMRC got their money and I wasn’t personally liable – the estate was. It’s something I’ll now be able to recommend to my clients.
Customer story: looming IHT deadline
When my grandad died I was really lucky to be left a share of his £4m estate, but because I was also an executor to the will I was also responsible for paying the IHT bill. The deadline to pay was looming and until the inheritance came through I just couldn’t pay and my solicitor was struggling to find options to help me settle the liability in time.
The solution: Inheritance Tax Loan Tower Street Finance helped by doing a speedy turnaround of an Inheritance Tax Loan in four days, meaning the bill was paid on time and the estate was able to be unlocked.
Customer story: share portfolio
Mum was financially savvy and had always had a lot of her money in share portfolios so when she died there wasn’t a lot of cash. Because the share portfolio companies won’t release funds to pay IHT I was stuck with a bill and no means to pay until the inheritance was released.
The solution: Inheritance Tax Loan Tower Street Finance acted really quickly for me and paid HMRC direct with an Inheritance Tax Loan which was repaid from the estate once the grant was issued. It was such a relief.
Find out more at about our Inheritance Tax Loan product or call us on 0343 504 7100.