Chapter 8: Pre-Grant Procedure

Question 1

What must personal representatives pay before they are able to obtain a grant?

Answer 1

Inheritance tax

Question 2

Who is responsible for paying inheritance tax?

Answer 2

Personal representatives must pay any inheritance tax due in order to obtain grant

Question 3

In which five ways can inheritance tax payments be funded?

Answer 3

1. Deceased’s bank and building societies may release funds directly to HMRC
2. Bank loan (PRs undertake to repay lender from first proceeds of realisation of assets)
3. Loan from beneficiary
4. Sale of assets
5. Insurance policy payments

Question 4

In exceptional cases, what may HMRC allow personal representatives to do if it is impossible to pay tax in advance?

Answer 4

In exceptional cases, HMRC may allow a grant to be obtained on credit

Question 5

When is tax due?

Answer 5

6 months from the end of the month in which the date the deceased died