HMRC has revealed that the amount paid in inheritance tax (IHT) last year totalled £5.9bn. This is a new record high.
IHT bills seem to be continuing to rise and IHT thresholds are being frozen until 2026.
If you are an Executor of an estate, it is so very important to obtain legal advice in the first instance.
DIY probate could be the cause of increased IHT when the IHT has not been calculated properly and, if there is a genuine high tax bill to pay, there are options available to Executors to pay the bill.
The IHT bill must be paid within 6 months from the date that the deceased passed away. The Executors must locate the funds and pay that bill – whether it is a small sum or a large sum.
As mentioned above, there are options available to Executors so that they can fund the IHT bill. You must make sure you obtain the advice sooner rather than later, and pay the IHT bill, otherwise, HMRC will only add on interest!
It is also as important to start looking into having your Will properly drawn and seek advice to try to minimise your tax burden as much as possible.
Make sure you, and your loved ones, are protected. Your loved ones are already going through a difficult time – let’s not make it more difficult for them.
Please contact me if you wish to discuss your own Will with me or need it reviewed.
0207 183 4595
The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.