Paying IHT

[waitingforpost]

The pension changes means more people will get pulled into the IHT threshold & on here a lot of people talk about their 1m plus homes.

Should the 6 month limit to pay free of interest be increased? Surely most can't pay it until a house is sold?

This is why probate properties often sell well under valuation. The property we sold went for almost half the original probate value because we had to get rid of it. Couldn't afford the installments or the cost of upkeep. There was definitely no ridiculous asking price but the market was in a slump. It took two years to sell even with all the price reductions.

I think 6 months isn't long enough. I think HMRC should allow 2 years from date of death before they start charging interest.

Ah yes, I see what you mean. If my H2 dies first he will have his nrb on his assets to use for his children and I will keep my £650/£1m to use for my estate.
Complicated.

Im so sorry to hear that.

It all sounds so unnecessarily complicated at a time where you really need more understanding from others.

Indeed, which is why some financial planning is required and typically the earlier the planning starts the less the overall cost.

as you say, most people look to minimise the cost of their life insurance to pay off the mortgage should they die before it is paid off. There is the option to combine or separately take out life insurance typically in a couple to pay out on the death of the second to die exactly to pay off any IHT. It depends on lots of things, including the policy being written in trust to ensure it’s outside of the estate and of sufficient value to cover any future IHT charge.

lots to change over that timescale too

How when you don’t own it and probate hasn’t been granted to give you the authority to act on behalf of the estate?

Insurance policies if you have parents….1 per parent, uncle, grandparent, aunt, sibling…