Inheritance Tax

If inheritance tax is payable, HM Revenue & Customs (HMRC) usually require this to be paid before the application for the grant of probate is lodged. The tax needs to be paid, at that time, on the value of the deceased’s estate other than mainly land and buildings. HMRC kindly allow the tax due on land and buildings to be paid by 10 equal installments, the first of which is due six months after the month in which the deceased died. In these circumstances it pays to lodge the grant application as soon as possible! Interest is generally due on the outstanding installments.

At one time it was often necessary for the Executor to take out a loan for the inheritance tax but now the deceased’s bank or building society will usually make funds available for this purpose, as they will for payment of the funeral account.