How to pay Inheritance Tax before probate is granted
This article is provided for information purposes only and does not constitute legal or financial advice, nor does it represent an offer of credit.
There is an obligation at the heart of almost every estate. HMRC requires inheritance tax to be paid before probate is granted, but as estate assets are typically frozen until probate is obtained, executors cannot always access the funds to pay the tax.
That catch-22 often lands on a family member with no prior experience of estate administration, who is suddenly responsible for meeting a tax deadline while grieving with accounts they cannot access and property they cannot sell.
Research suggests 71% of adults do not fully understand how inheritance tax works. So, it is no surprise that many executors assume they have no real options beyond using personal funds or waiting indefinitely for a resolution that may not come on its own.
But there are options. This guide explains how the rules work, why the funding gap exists, and how specialist estate lending can help you navigate it with confidence.
Why Inheritance Tax comes before probate: understanding the rules
Inheritance tax is due within six months from the end of the month in which a person passes away. Miss that deadline and HMRC will begin charging interest on the outstanding amount. The obligation does not wait for probate.
Before a grant of probate is issued, HMRC needs to be satisfied that tax liabilities have been addressed. That means either paying in full or putting approved arrangements in place. Only then will the probate registry proceed.
The process involves several steps and the right forms. For most estates with a taxable liability, executors will need to complete form IHT400, which covers the full details of the estate. Simpler estates may qualify for a shorter process, but the tax obligation remains. Estates may qualify for a shorter process, but the tax obligation remains regardless of which route applies.
The government provides guidance on what you need to do before applying for probate. This is worth reviewing early in the administration process. The responsibility sits with the executor, not the beneficiaries or the solicitor. The executor must ensure inheritance tax is reported and paid correctly and on time, regardless of whether the estate has the liquidity to cover it.
The executor’s Catch-22: when funds are locked but tax is due
Most estates are not sitting on a pile of accessible cash. Most of an estate’s value is typically held in property. The rest in bank accounts that are frozen the moment a death is registered.
Banks will not release funds until a grant of probate is produced. Property cannot be sold or refinanced until the same. So, the executor is left holding a tax bill they have no immediate means to pay, with every potential source of funding locked behind the very probate document they cannot yet obtain.
The consequences of getting stuck here are real:
This is not an unusual situation. It is one of the most common pressure points in estate administration. And it is one that many executors do not know they can get help with.
Untangled’s specialist solution: how Estate Advance Loans may help
An Estate Advance Loan can provide funding to meet inheritance tax and other estate-related costs before probate is granted. Untangled take an assignment over the proceeds of the estate, not against the executor personally. Repayment is made from the estate once probate is obtained and assets are realised.
That structure means the executor does not take on personal liability. This structure is designed so that repayment is linked to the administration of the estate, rather than requiring ongoing monthly repayments. during an already complicated period. The loan sits within the estate and resolves when the estate resolves. Any lending is subject to underwriting and eligibility criteria, and borrowing involves costs.
The key features worth understanding:
For solicitors managing an estate, an Estate Advance Loan may help to remove one of the biggest practical obstacles to progressing administration. For executors, it could remove the burden of funding a tax liability out of their own pocket.
Turning a stressful situation into a manageable process
The requirement to pay inheritance tax before probate is granted is not going to change. What can change is how prepared you are for it, and what options you know are available when the funding gap appears.
If you are an executor dealing with this right now, the most important thing to understand is that you do not have to fund it yourself. Specialist estate lending exists precisely for this situation. It is structured to work within the probate process, not around it.
If you are a solicitor or broker supporting a client through estate administration, an Estate Advance Loan referral is a straightforward way to remove one of the biggest blockers to progressing the case. Untangled handles the assessment, the structuring, and the communication. You retain oversight without absorbing the complexity.
The payment of Inheritance Tax may cause stress. But it is solvable. And you do not have to face it without support.
Talk to us about an Estate Advance
If you’re an executor, solicitor, or broker dealing with an inheritance tax liability ahead of probate, we’re here to help. Untangled’s Estate Advance Loans are designed for exactly this situation. Get in touch with our team on 0800 009 6590 or email probate@untangled.co.uk to find out what’s possible for your case.
All lending is subject to status, eligibility, and affordability assessments. Terms and conditions apply. Borrowing involves the payment of interest and charges, and failure to maintain repayments may result in additional costs and could affect your credit file.
Ampla Consumer Finance Limited (trading as Untangled) is authorised and regulated by the Financial Conduct Authority (FCA) FRN 792153. Individuals should seek independent professional advice tailored to their circumstances before entering into any credit agreement.