Inheritance Tax Liability Funded via Second Charge on Family Home in Wiltshire
£390,000 · 12 months · 1.04% pm. A beneficiary inherited a Wiltshire estate but faced a £390,000 inheritance tax liability payable to HMRC within six months of the date of death.
The Client
Beneficiary
The Challenge
A beneficiary inherited a Wiltshire estate but faced a £390,000 inheritance tax liability payable to HMRC within six months of the date of death. The estate included a family home with an existing mortgage and agricultural land that could not be sold quickly.
Our Solution
Doulton placed a second charge of £390,000 on the family home behind the existing residential mortgage. First charge lender consent was obtained and the HMRC liability was met within the statutory period.
The Outcome
Inheritance tax paid on time. The agricultural land was sold during the bridge term via a specialist rural agent, generating proceeds to redeem the Doulton facility in full at month eleven. Key highlights: IHT statutory deadline met; Agricultural land sold during term to redeem; Estate preserved intact - no forced distressed sales.