Inheritance Tax

Prior to the estate obtaining the grant of probate and being distributed, any inheritance tax liability will have to be paid.

This may mean assets (such as property or stocks and shares of investments) may be required to be sold to meet the inheritance tax liability.

However, banks are always willing to lend against assets and property after taking security over the assets and charging 2%-3% interest above base.

It is important to ensure that all the relief’s and allowances have been used and any planning such as a Deed of Variation and setting up trusts for the Family Office has taken place.

Banks charging a significant interest percentage above the bank base rate based on a secured loan (i.e. secured against the estate before distribution) which would normally be significantly lower interest rate.