Paying Inheritance Tax & probate issues!

[ajjax]

Help! Me and my three siblings have inherited a property and assets of about �400k. We understand we have to get grant of probate, there is a will and we all agree to it. The problem we have is paying the inheritance tax bill! We simply dont have 40k to pay it, and we dont have the credit to just get a loan each! Are there ways around this? We have someone interested (cash buyer - developer) already stating an interest in the property, can't a solicitor agree to pay the IHT bill on the house sale?! Surely not everyone that inherits an estate/money has loads of money stashed away to pay the tax bill immediately?! Thank you in advance.

[dzug]

If it's a property the Inland Revenue will allow you to pay it in instalments - plus interest of course.

You should have the credit to get a loan as executors, regardless of your personal situations. You have the security of the property. The interest charged may or not be more than the revenue would charge.

Finally if there are any cash assets (eg bank accounts, national savings) it's often possible to persuade the bank to release these to the revenue in advance of probate.

Or maybe the developer would lend it to you???

[spudqueen]

When this happened to my brother and I we went through a solicitor. Not sure how the money was actually paid, but it was. We were having a few disagreements (my brother and I) so eventually went through a solicitor which was much better than us arguing all the time.

[fredpuli47]

Are you sure that the developer is offering a proper price? Developers know how vulnerable, innocent and ignorant of such matters, families of the deceased are. They know that people in your situation get scared and are grateful to anyone who takes the property. It's worthwhile asking around estate agents and also going to a solicitor for that reason alone. If you sell you'll need a solicitor to do the conveyance etc anyway.

The Revenue allow you up to ten years to pay inheritance tax in instalments on real estate.