Chapter 8: Pre-Grant Procedure Flashcards
1
Q
What must personal representatives pay before they are able to obtain a grant?
A
Inheritance tax
2
Q
Who is responsible for paying inheritance tax?
A
Personal representatives must pay any inheritance tax due in order to obtain grant
3
Q
In which five ways can inheritance tax payments be funded?
A
- Deceased’s bank and building societies may release funds directly to HMRC
- Bank loan (PRs undertake to repay lender from first proceeds of realisation of assets)
- Loan from beneficiary
- Sale of assets
- Insurance policy payments
4
Q
In exceptional cases, what may HMRC allow personal representatives to do if it is impossible to pay tax in advance?
A
In exceptional cases, HMRC may allow a grant to be obtained on credit
5
Q
When is tax due?
A
6 months from the end of the month in which the date the deceased died