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Where Taxpayers and Advisers Meet

IHT Payment

Another1
Posts:9
Joined:Sun Apr 04, 2021 12:17 pm
IHT Payment

Postby Another1 » Sun Aug 01, 2021 4:36 pm

In the knowledge that a sizeable IHT will be due on an inherited estate,can the terminally ill person who has the estate in question,make a gift to the Benificiary such that the value of the gift will be sufficient to pay the expected IHT,….consequently the Benificiary will have no need to take out a loan for that purpose..

Samson22
Posts:55
Joined:Mon Aug 17, 2020 10:54 am

Re: IHT Payment

Postby Samson22 » Mon Aug 02, 2021 6:00 am

I cant see why not.

However a deceased bank funds can be forwarded to hmrc without probate/inheriting them. Unlike illiquid assets (as I'm sure you know) if the gift is over 325k (assuming no other gifts last 7 yesrs) payment will be on your account rather than (assumabily) executor

Another1
Posts:9
Joined:Sun Apr 04, 2021 12:17 pm

Re: IHT Payment

Postby Another1 » Mon Aug 02, 2021 4:57 pm

Thanks Samson,…..which is it to be?….If IHT is paid out of estate by Executors, then such a gift would not be necessary?…

When you say ‘deceased funds can be forwarded to Hmrc’…what do you mean?…presumably it would be at their request…..is this to ensure any declarations are true and correct?

And when you mention ‘gift is over 325k’,…presumably you mean any gift out of estate above NRB, and not the value of gift.

AGoodman
Posts:1310
Joined:Fri May 16, 2014 3:47 pm

Re: IHT Payment

Postby AGoodman » Tue Aug 03, 2021 12:08 pm

Samson is talking about the Direct Payment Scheme. Most banks are members and will pay funds directly to HMRC (on application) to pay the IHT.

AGoodman
Posts:1310
Joined:Fri May 16, 2014 3:47 pm

Re: IHT Payment

Postby AGoodman » Tue Aug 03, 2021 12:08 pm

https://www.gov.uk/government/publications/inheritance-tax-direct-payment-scheme-bank-or-building-society-account-iht423


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