adfditional inheritance tax

[nick2016]

I was the sole beneficiary under my fathers will who passed away in 2012. Professional executors dealt with the estate, paid inheritance tax and distributed the remaining funds to me.
The executors have now informed me that they made a mistake on the estate, the outcome for which is additional inheritance tax now being due. They have acknowledged their mistake and that is not in dispute.
However the executors are now saying that they effectively overpaid me in 2012 when they distributed the estate assets to me. They are demanding that I repay them an amount equivalent to the additional inheritance tax now due.
Do the executors have a legal right to demand I repay to them part of the estate assets distributed to me in 2012 ?

[AGoodman]

In principle, yes. The claim is in equity so there is a defence of "change of position" if you could demonstrate that it was inequitable (ie unfair) to have to repay. This usually involves evidence that you have spent the money or committed to expenditure that you would not have had you not received these funds, with the result that it would be unfair for them to recover the monies. There is a time limit but it is again one of fairness and if the executors have only just discovered the mistake they are unlikely to be time barred.

Bear in mind that you may also be liable for the tax under s.200(1)(c) of the Inheritance Tax Act 1984 - being "so far as the tax is attributable to the value of any property, any person in whom the property is vested (whether beneficially or otherwise) at any time after the death...;". If you did not repay the monies, they could point HMRC in your direction. HMRC are unlikely to be persuaded by any defence other than having spent the entire distribution.