Brits warned of wrong inheritance tax move | Personal Finance | Finance

Once a loved one passes away, the probate procedure can be long and complicated, according to an expert at probate and legal funding specialists Level Group. But one part of the process in particular is catching Brits out, leading to frozen bank accounts, unpaid bills, and empty property.

Probate is the legal and financial process of dealing with the property, money, and possessions of a person who has died, and over the last three years, there’s been a 134% increase in probate cases taking over a year. Probate and inheritance tax expert, George Williamson, said the process usually takes several months from the appointment of the Executor of the Will until receiving the Grant of Probate, and even longer to the final distribution of the assets to the beneficiaries.

To receive the Grant of Probate, families must first pay Inheritance Tax if it is applicable to the estate. But there’s a catch – some may not be able to afford the Inheritance Tax bill without their inheritance, and the latest inheritance tax receipts for July 2025 hit record levels at £844m. This can drastically slow down the whole process as families search for a solution.

Mr Williamson shared some options for payment of the Inheritance Tax bill prior to receiving inheritance in a bid to speed up the process for both Executioners and Beneficiaries.

He said: “The Executor of a Will (or Personal Representative when there is no Will) applies to the Courts for a Grant of Probate. This gives them legal control over the deceased person’s assets so they can settle any liabilities of the Estate before distributing the residual proceeds to the Beneficiaries. The Executor is responsible for paying any Inheritance Tax due.

“However, to get the Grant of Probate, any Inheritance Tax (IHT) must be paid by the Executor to HMRC before it can be issued by the Courts. This means that the executor or personal representative must find the money to pay the IHT before they have access to the assets held in the Estate.

“The final phase of the probate process involves disposing of the assets and the distribution of the estate proceeds to the Beneficiaries of the Will. Given how complicated the process is, it is usually 9-12 months before any of the Beneficiaries can make a claim on the Estate after probate and receive any money from the Estate.”

Mr Williamson continued: “If you are uncomfortable at being named Executor of the Will, you do have the option to decline. There are certain responsibilities with the role that could lead to being personally liable for any underpaid bills or tax, or errors in distribution of the assets between Beneficiaries.

“You can renounce your role after someone’s death, if you haven’t already undertaken work. You should obtain advice before you do this from a legal representative.

“An Executor can also delegate their responsibilities to a solicitor, which is often helpful if the estate is complex. However, this won’t solve the problem of Inheritance Tax being paid upfront.”

“One solution is to apply for an Inheritance Tax Loan, which allows the Executor to pay the Inheritance Tax to HMRC, so the Grant of Probate is not held up, » said Mr Williamson.

“Any one Executor, or Personal Representative, if there isn’t a will, is able to access an Inheritance Tax Loan.

“Another option is an Inheritance Advance, which allows Beneficiaries to access a proportion of their inheritance earlier.

“An Inheritance Advance means beneficiaries don’t have to wait 12 months for their inheritance.

“Many beneficiaries use an Inheritance Advance to pay debts, make home improvements, pay for education/social care costs, move house, go on holiday or just increase their disposable income.

“Now, when a person dies without leaving a valid Will, the rules of intestacy apply, which set out how much each beneficiary gets. This applies to Inheritance Advances.”

Mr Williamson added: “It is important to read the small print when applying for any loans or advances, but with Level, the Executors or Beneficiaries aren’t required to make monthly repayments. The funds are repaid directly from the estate.”

“If the representative or Executor of the Will can prove that paying in one lump sum would cause hardship, the Inheritance Tax can be paid over 10 years in equal instalments. The second payment onwards would accumulate interest, and once the bill can be paid in full, it must be settled, » added Mr Williams.

“A Grant on Credit can also be applied for to HMRC, which means that you can postpone some or all the tax that can’t be paid up front until the non-cash assets have been sold. Interest would be applied to this method as well. It is really important to fully research any financial support schemes you are looking at applying for before committing, but there is help out there to speed up the process for families.”