Who pays the tax office?
This will be paid by personal representatives – typically, any children. In some cases, children or heirs can find themselves having to pay the tax bill out of their own funds. Some people find themselves forced to take out bridging loans to meet tax liabilities because they are in the process of disposing of assets, which is why planning before you die can be very helpful. When is money owed for inheritance tax payable? It needs to be paid six months after the end of the month when the person has died. The authority to release the money held in the estate is known as probate in England and Wales and confirmation in Scotland. How can I avoid paying inheritance tax through gifts? The crucial issue with making gifts to below the inheritance threshold is that they are made seven years before you die – it is, in a sense, a clock ticking when you can beat the tax office. What are the rules concerning gifts? Although gifts made in the seven years before your death can be subject to inheritan
