Borrowing to meet the tax bill

The deceased's bank may be willing to lend the money to cover the IHT bill. As the estate is large enough to attract inheritance tax in the first place, it's a racing certainty that they'll get their money back once the estate goes through probate. The bank may charge a fee for arranging the loan, and you'll have to pay interest. However, it shouldn't take too long to pay back the loan once probate or letters of administration have been granted and the money from the deceased's estate starts rolling into the executor's account.

You may be able to claim income tax relief on any interest payments on a loan to cover IHT. Call your local tax office for full details.

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