In a recent article, The Times sheds light on the convoluted and costly process of handling someone’s estate after death, particularly the intersection of probate and inheritance tax (IHT) regulations. The current system dictates that any property solely owned by a deceased individual cannot be sold until probate is granted. However, IHT bills must typically be settled before probate is approved, and failure to pay within six months results in a hefty 7.75% interest charge. The Times reveals that although HM Revenue & Customs may, in exceptional cases, grant a deferred payment plan known as a “grant on credit,” stringent conditions apply. The Times suggests a more sensible approach would be to grant probate before settling the IHT bill or, at the very least, suspend interest charges until the systemic delays are rectified.

Source: The Times March 14, 2024 05:06 UTC