Great Aunt not planned for payment Inheritance Tax

I had a call this morning from a long standing client.  Her son is in urgent need of £18,500 and she wanted to help him out.

It seems that his daughter (my client’s grand-daughter aged 12) is inheriting part of her great aunt’s estate.  All three beneficiaries must pay £18,500 each before the money can be released.  The alternative is to pay £3,000 and the balance over a period, with added interest!

How has this situation arisen?

Great Aunt had not planned for the payment of Inheritance Tax.

The son is fortunate as his mother is able and willing to help but at least one of the other families is in a more difficult position.

A small amount of planning would undoubtedly have made the situation easier, removed the stress and put the money in the intended beneficiaries’ hands quickly.

Good financial planning is all about Right Money, Right Place, Right Time.