Inheritance tax time limit

[Confusedcatlady1]

Hello,
I have agreed to be an executor for a family member’s will (who thankfully is fit and well and I hope that my services are not needed for some time!). IHT came up in discussions - there would likely be a bill for IHT but not enough money in the bank account to pay for it - the tax would need to be paid from the sale of the house. My question is what happens if the house takes a while to sell and not within the 6 months time limit to pay HMRC? Who would pay the tax bill until the proceeds from the house sale came through? Thank you.

www.gov.uk/paying-inheritance-tax/yearly-instalments

It also depends on who they leave the house to. The IT threshold is around £270K?? (Sorry but it's easy to look up) It's pretty high so if the house is needed to put it up the that figure and the house is left to a spouse or children then that reduces the tax liability.

Thank you.
The house will need to be sold so that the proceeds can be split between different children and grandchildren, it is not anticipated that any of the adult offspring will remain living in the house although one adult child does live in the family home at the moment.

As an executor I am slightly worried about the thought of taking out a loan to cover the first instalment if the house takes some time to sell.

My father was sole executor foe a will years ago and said he would never do it again. The onus is on you to have everything correct and you are liable if it is wrong. . I would urge the person concerned to also have a solicitor named as an executor also.

I would decline the invitation and I work in probate. It's not an honour, it can be a nightmare. Especially in circumstances like these.

I would urge the person concerned to also have a solicitor named as an executor also.

If the solicitor is actually named as executor, you have very little redress at all if their service falls short of what you expect.

Much better for the executor to employ a solicitor, who is then paid from the estate. Then, if things take forever because the solicitor has too much on and prioritises other cases, you can take the business elsewhere.

I've done probate for many family members, and considered it an honour to render this last service.

@FinallyHere I’d never considered that- it makes sense, thank you. We’re due to update our wills soon so will take that into consideration.🙂