Hello
How does one pay the total of IHTax when all the assets are distributed in various accounts, shares, bonds etc.? Does one pool them into one current account first? I realise that bank accounts are only protected to the sum of 85K? Thanks.
Hi Dee, and thank you for your excellent question. IN generic terms, this is what generally happens in practice (each estate of course having its own articular peculiarities).
IHT payable against cash assets is due before probate is issued. By definition therefore, money tends to be frozen at that point. However, many banks will release funds directly to the Revenue for the purposes of that initial payment of IHT. Any balance due against property can be paid later, usually allowing time for the executors to realise the case assets after probate has been issued, or of course, to sell the property in question.
As a related aside, you would certainly expect there to be a centralised ‘executor account’ come what may where all assets are paid to, and bills paid from. If you have a solicitor act for you, they can generally arrange this for you via their own commercial banking arrangements (as part of their ‘client account’).
Hope that helps – and thank you for reaching out to Team QLAW!