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Where Taxpayers and Advisers Meet

IHT and shares

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm
Re: IHT and shares

Postby maths » Wed Sep 12, 2018 3:24 pm

On death a person's estate is liable to IHT.

Any IHT is typically paid out of the estate before the beneficiaries receive anything.

It is the executors responsibility to ensure such payment is made.

Where IHT is due then it has to be paid before probate can be granted. Sometimes this can be difficult and executors have to borrow from a bank or possibly a beneficiary to pay it; they then take it out of the estate to repay any such loans.

Qryio
Posts:8
Joined:Fri Sep 07, 2018 8:00 pm

Re: IHT and shares

Postby Qryio » Thu Sep 13, 2018 11:44 am

Hi thanks very much...

I just read somewhere online that some banks have agreements 'direct payment scheme' which allows IHT to be paid prior to probate if deceased's account in sole name). This would avoid any executor having to 'borrow' anything or make a bank loan if enough in deceased's account(s)?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: IHT and shares

Postby AGoodman » Fri Sep 14, 2018 2:11 pm

Correct

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: IHT and shares

Postby AGoodman » Fri Sep 14, 2018 2:13 pm

and best (and probably only) way to find out what is going on is to ask.

from what you have said about the estate, I suspect it could easily take 3-4 months before the executors are ready to transfer the shares, even if they are diligent. HMRC can be very slow these days.

Qryio
Posts:8
Joined:Fri Sep 07, 2018 8:00 pm

Re: IHT and shares

Postby Qryio » Sun Sep 16, 2018 9:18 am

Thanks for response and to again all who have responded so far, thanks


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