Do Loans Have To Be Repaid on Death

Published / Last Updated on 06/09/2018

Do loans have to be repaid on death? This will depend upon the type of loan and whether it is in joint names or your sole name and whether the loan is secured on assets such as a car or property if it is unsecured such as a typical bank loan or credit card. We also explain where loans are bigger than your wealth, which debt gets repaid first and in what proportions.

Related Videos

What Happens When Property Sells for More Than Probate Valuation?

What Happens When Property Sells for More Than Probate Valuation?

HMRC requires that property and assets are valued at their ‘open market value’ at the date of death when valuing assets and the estate for inheritance tax calculations. We suggest ...

3m14d

Inheritance

Survivorship and Inheritance Tax for a Joint Bank Account on Death

Survivorship and Inheritance Tax for a Joint Bank Account on Death

Are Joint Names Bank Accounts included in the estate and inheritance tax calculation on death? In general terms, HMRC does consider joint bank account balances to form part of the ...

3m15d

Inheritance

In Depth Underwriting for Discounted Gift Trusts

In Depth Underwriting for Discounted Gift Trusts

Discounted Gift Trust providers are starting to conduct much more in depth underwriting to establish a more accurate life expectancy forecast when offering discounts on investments within discounted gift ...

4m18d

Inheritance

Unmarried Couple Property Owners Pay More Inheritance Tax

Unmarried Couple Property Owners Pay More Inheritance Tax

We have said this until we a ‘blue in the face’ and we repeat the message again for unmarried couples to take action before it is too late. If you ...

7m5d

Inheritance

The Inheritance Tax 7 Year Gift Rule is Actually up to 14 Years

The Inheritance Tax 7 Year Gift Rule is Actually up to 14 Years

Firstly, a reminder of gifting money or assets as potentially exempt transfers (PET) i.e., it is outside your estate after 7 years and also chargeable lifetime transfers (CLT) where ...

> 1y1m

Inheritance

We All Need a Gifting Diary for Inheritance Tax Planning

We All Need a Gifting Diary for Inheritance Tax Planning

This is the third and final video this week on a closer look at life insurance in trust to cover inheritance tax liabilities on death and the need to ...

> 1y1m

Inheritance

Pitfalls of Paying Inheritance Bill with Life Insurance in Trust

Pitfalls of Paying Inheritance Bill with Life Insurance in Trust

Many people set up life insurance policies and put them in trust for loved ones to pay their inheritance tax liability on death but there are tax liabilities if ...

> 1y1m

Inheritance

AIM Listed Shares to Save Inheritance Tax

AIM Listed Shares to Save Inheritance Tax

We have been approached many times by both clients and new enquiries for advice on using AIM listed shares to reduce inheritance taxes. What is AIM? The Alternative Investment Market AIM ...

> 1y7m

Inheritance

Widows and Widowers Treble and Quadruple Inheritance Tax Allowances

Widows and Widowers Treble and Quadruple Inheritance Tax Allowances

Nil Rate Bands for Inheritance Taxes It is well known that everyone in the UK has inheritance tax nil rate bands: Main nil rate band for Inheritance Tax (NRB) = £325,000 Private ...

> 1y4m

Inheritance

Personal Possessions and Chattels in a Will

Personal Possessions and Chattels in a Will

When making a Will, many people make financial property and money gifts to not only spouses and partners but also to children, other family members, friends, and charities. This is ...

> 1y4m

Inheritance

Gifting Personal Possessions, Chattels, CGT, and the 5/3rds Rule

Gifting Personal Possessions, Chattels, CGT, and the 5/3rds Rule

As part of any estate and inheritance tax planning reduction exercise you may wish to give to loved ones some of your personal possessions and chattels before death. If ...

> 1y4m

Inheritance

Gifting My Chattels but Keep At Home Under Licence

Gifting My Chattels but Keep At Home Under Licence

We have explored in Chattels video 1, the definition of personal possessions and chattels in a will and in video 2, gifting chattels to save inheritance tax, chattels exemption ...

> 1y4m

Inheritance

Unused Inheritance Tax Nil Rate Bands in Practice

Unused Inheritance Tax Nil Rate Bands in Practice

Each person in the UK has two inheritance tax nil rate bands i.e., inheritance tax is charged at 0%. 1. Nil Rate Band (NRB) Each person has an inheritance tax nil ...

> 1y5m

Inheritance

Inheritance Tax Returns Short Form IHT205 v Long Form IHT400

Inheritance Tax Returns Short Form IHT205 v Long Form IHT400

There are two types of forms available when a person dies and you need to file inheritance tax returns with HMRC: Short Form: IHT 205 (8 pages) Long Form: IHT 400 ...

> 1y11m

Inheritance

Inheritance Tax Planning Using Unused Annual Gift Allowance

Inheritance Tax Planning Using Unused Annual Gift Allowance

Most people are aware that we each have a £3,000 annual gifting allowance for inheritance tax planning. If you have an unused annual gifting allowance for last year too, ...

> 1y11m

Inheritance

Use or Lose Inheritance Tax Allowances on Death

Use or Lose Inheritance Tax Allowances on Death

When working out a deceased person’s net estate for inheritance tax calculations you cannot make use of any unused inheritance tax lifetime gift allowances. E.g. We all have a £3,000 ...

> 1y11m

Inheritance

Combining Inheritance Tax Gifting Allowances

Combining Inheritance Tax Gifting Allowances

Many will know that gifts between spouses and civil partners are free from inheritance taxes immediately. There are a number of additional gift allowances for inheritance tax planning: Annual Gift ...

> 1y11m

Inheritance

The Need For Intergenerational Wealth Planning

The Need For Intergenerational Wealth Planning

HMRC this week released figures for inheritance tax receipts for April to August at £2.7bn. This is a massive increase on IHT receipts of 35% for the same period ...

> 2y

Inheritance

Dormant Bank, Pension and Investment Accounts

Dormant Bank, Pension and Investment Accounts

The Government has published draft legislation to include additional assets across the insurance and pensions, investment and wealth management, and securities sectors in the Dormant Account scheme that will ...

> 2y4m

Inheritance

Revisiting Furnished Holiday Lets to Reduce Inheritance Tax

Revisiting Furnished Holiday Lets to Reduce Inheritance Tax

We have previously covered the idea of furnished holiday lets (FHLs) as a means to reduce inheritance tax (IHT) over 7 years ago. The principle being that a trading ...

> 2y6m

Inheritance

Non UK Domicile Spouse Change to UK Domicile

Non UK Domicile Spouse Change to UK Domicile

Domicile is peculiar to UK law and does mean what type of home you have, it is your ‘homeland’ status and whether your wealth is fully chargeable to UK ...

> 2y11m

Inheritance

Use Equity Release for Inheritance Tax Planning

Use Equity Release for Inheritance Tax Planning

The usual starting point for most people should be that equity release is the last option as they are difficult or expensive to redeem early i.e. buy your way ...

> 2y7m

Inheritance

When Is Inheritance Tax Payable On Pension Transfers

When Is Inheritance Tax Payable On Pension Transfers

When is inheritance tax payable when you have transferred a pension? We explain the two year rule and how to work out the 'Before' value and 'After' value to ...

> 5y1m

Inheritance

Transferring Unused Inheritance Tax Allowance

Transferring Unused Inheritance Tax Allowance

Each person who is domiciled in the UK or deemed domicile (after living here for 15 of the last 20 years) has the following inheritance tax allowances on death: Nil ...

> 2y11m

Inheritance

Transferred Nil Rate Band Can Only Be Used On Death

Transferred Nil Rate Band Can Only Be Used On Death

Inheritance Tax is a GIFT tax not a DEATH tax. Most people can use their full Nil Rate Band (NRB) to gift money in life i.e. a Lifetime Gift, ...

> 3y9m

Inheritance

Reduce Inheritance Tax With A Family Investment Company

Reduce Inheritance Tax With A Family Investment Company

Family Investment Companies (FIC) to save inheritance tax by setting up a limited company then restructure the shares (with legal advice) to offer Type A shares (no ownership of ...

> 3y7m

Inheritance

Expenses on Death not Offset Against Inheritance Tax

Expenses on Death not Offset Against Inheritance Tax

Your funeral expenses and any other debts outstanding at the time of your death e.g. bills, loans, mortgages can be offset against your estate for Inheritance Tax calculations. Expenses incurred ...

> 3y11m

Inheritance

Chargeable Gains on Investment Bonds on Death

Chargeable Gains on Investment Bonds on Death

When you cash in a bond or part cash in a bond it is a 'chargeable event' to income tax. Does this apply on death? With top slicing relief, the ...

> 3y11m

Inheritance

Residence Nil Rate Band Descendants and Trusts

Residence Nil Rate Band Descendants and Trusts

Residence Nil Rate Band - We all have a £325,000 inheritance tax nil rate band allowance. On top of this we have a private residence nil rate band £150,000 ...

> 4y

Inheritance

Simplify Inheritance Reduce 7 Year Rule to 5 and Abolish Taper Relief

Simplify Inheritance Reduce 7 Year Rule to 5 and Abolish Taper Relief

The government should as a package: Reduce the 7 year period to 5 years, so that gifts to individuals made more than 5 years before death are exempt from Inheritance ...

> 4y1m

Inheritance

Simplify Inheritance Replace Gift Limits with Lifetime Gift Allowance

Simplify Inheritance Replace Gift Limits with Lifetime Gift Allowance

The government should as a package: Replace the annual gift exemption and the exemption for gifts in consideration of marriage or civil partnership with an overall personal gifts allowance. They should ...

> 4y1m

Inheritance

Simplify Inheritance Business Property Relief AIM Shares

Simplify Inheritance Business Property Relief AIM Shares

Office for Tax Simplification Recommendation (July 2019) The government should consider reviewing the treatment of indirect non-controlling holdings in trading companies such as Alternative Investment Market AIM listed shares and ...

> 4y1m

Inheritance

Simplify Inheritance No CGT Gifting Property But IHT On Base Cost

Simplify Inheritance No CGT Gifting Property But IHT On Base Cost

Office for Tax Simplification Recommendation (July 2019) The government should explore options for simplifying and clarifying the rules on liability for the payment of tax on lifetime gifts to individuals ...

> 4y1m

Inheritance

Simplify Inheritance Tax Life Insurance Trusts

Simplify Inheritance Tax Life Insurance Trusts

Office for Tax Simplification Recommendation (July 2019) The government should consider ensuring that death benefit payments from term life assurance are inheritance tax free on the death of the life ...

> 4y1m

Inheritance

Simplify Inheritance Holiday Lets As Trading Business

Simplify Inheritance Holiday Lets As Trading Business

Office for Tax Simplification Recommendation (July 2019) The government should consider whether to align the Inheritance Tax treatment of furnished holiday lets with that of Income Tax and Capital Gains ...

> 4y1m

Inheritance

Commorientes Rule 3 Beneficiary Survival Clause in Will

Commorientes Rule 3 Beneficiary Survival Clause in Will

When two people die at the same time i.e. simultaneous death, the 'commorientes' rule of the Property Act 1925 applies i.e. the older person is deemed to have died ...

> 4y1m

Inheritance

Commorientes Rule 2 Simultaneous Death and Inheritance Tax

Commorientes Rule 2 Simultaneous Death and Inheritance Tax

Simultaneous death rules mainly affect married couples and registered civil partners. Remember, the oldest is deemed to die first. No inheritance tax is usually payable when wealth is transferred on ...

> 4y1m

Inheritance

Commorientes Rule 1 When Two People Die At Same Time

Commorientes Rule 1 When Two People Die At Same Time

When two people die at the same time i.e. simultaneous death and it is impossible to establish who died first, the 'commorientes' rule of the Property Act 1925 applies. The ...

> 4y1m

Inheritance

Inheritance Tax Successive Charges Relief

Inheritance Tax Successive Charges Relief

Is there a risk of paying double inheritance tax if a person dies shortly after receiving inherited wealth from another estate that had already paid inheritance tax? Successive Charges Relief: "If ...

> 4y2m

Inheritance

Lifetime Receipts Tax

Lifetime Receipts Tax

Inheritance Tax is a TAX ON DEATH. Currently:Main IHT Allowance: £325,000 per personPrivate Residence Nil Rate Band: £125k Tax Year 2018/19, £150k Tax Year 2019/20 and £175k Tax Year 2020/21 Meaning ...

> 4y5m

Inheritance

Regular or Habitual Money Gifts for Inheritance Tax Planning

Regular or Habitual Money Gifts for Inheritance Tax Planning

HMRC has some basic rules of thumb when allowing regular or habitual money gifts for inheritance tax planning as normal expenditure from normal income and not affecting your standard ...

> 4y9m

Inheritance

Will Children Have to Pay Tax If I Give Them Lump Sum Money

Will Children Have to Pay Tax If I Give Them Lump Sum Money

We explain money gift rules and inheritance taxes. If I have given lump sums to my children will they have to pay tax?...

> 5y

Inheritance

Life Interest In Property Trust

Life Interest In Property Trust

Use a life interest in property trust inside your Will to protect property assets on death and also ensure a life tenancy for your spouse to continue to live ...

> 6y2m

Inheritance

Nil Rate Band and Residence Nil Rate Band Discretionary Trust

Nil Rate Band and Residence Nil Rate Band Discretionary Trust

What is a Nil Rate Band and Residence Nil Rate Band Discretionary Trust? This is a must include for most Wills to help protect you assets....

> 6y2m

Inheritance

Business Property Relief Investment

Business Property Relief Investment

Video explores the use of Business Property Relief Investment Schemes and whether you should use these or physically own/run a trading business to secure 100% inheritance tax free business ...

> 6y2m

Inheritance

Land Registry Deceased Joint Property

Land Registry Deceased Joint Property

Land Registry form for deceased joint proprietorship i.e. death of a joint tenants property owner transferring ownership into sole name on death....

> 6y8m

Inheritance

Pension Transfer 2 Year Death Rule

Pension Transfer 2 Year Death Rule

Video explores the risk of inheritance tax payable if you know you are seriously or terminally ill, transfer a pension and die within 2 years of the transfer. HMRC ...

> 6y8m

Inheritance

ISA on Death Tax Free Con

ISA on Death Tax Free Con

Video: Why has the government changed the rules to allow ISA transfers to spouses on death tax free and a private residence nil rate band for property. A con ...

> 7y

Inheritance

Inheritance Tax Pension Transfer 2 Rule

Inheritance Tax Pension Transfer 2 Rule

Video looks at the risk of inheritance tax payable on a pension transfer if you die within 2 years. HMRC is tightening up on premature death following a transfer ...

> 7y

Pensions

Private Residence Nil Rate Band Explained

Private Residence Nil Rate Band Explained

Video explores the Private Residence Nil Rate Band from April 2017 and how it reduces inheritance tax liability on death....

> 7y1m

Inheritance

Residence Nil Rate Band Qualifying Property

Residence Nil Rate Band Qualifying Property

Video explores the reduction of inheritance tax using the Residence Nil Rate Bank from April 2017 and what constitutes Qualifying Property....

> 7y1m

Inheritance

Residence Nil Rate Band Sell or Downsize Property

Residence Nil Rate Band Sell or Downsize Property

Videos looks at what happens to the Residence Nil Rate Band RNRB if you sell or downsize your property when inheritance tax planning....

> 7y1m

Inheritance

Residence Nil Rate Band Beneficiaries

Residence Nil Rate Band Beneficiaries

Video looks at lineage, direct line descendants and other beneficiaries that qualify for the Residence Nil Rate Band RNRB when inheritance tax planning....

> 7y1m

Inheritance

Death Succession Planning for Partnerships

Death Succession Planning for Partnerships

Video explores succession planning for partnerships on death looking at the three types of partnership agreement: automatic accrual, buy and sell agreement and cross option agreement....

> 7y4m

Business

Which Will Is Used If Die Simultaneously

Which Will Is Used If Die Simultaneously

Video looks at simultaneous death i.e. you die at the same time as your partner, who's Will would be used?...

> 7y4m

Inheritance

Not Married Inheritance Tax Warning

Not Married Inheritance Tax Warning

Video explores property ownership for joint tenants and tenants in common for Unmarried couples and an inheritance tax trap....

> 7y4m

Inheritance

Probate Fees and Limits 2016

Probate Fees and Limits 2016

Video: What is probate? What is the probate limit? When is probate required? What are the proposed limits following the Government consultation 2016?...

> 7y5m

Inheritance

Tenants In Common Form A Restriction

Tenants In Common Form A Restriction

Video explores property ownership under Tenants in Common Form A Restriction and the words "No disposition by a sole proprietor of the registered estate" to protect you....

> 7y6m

Property

Double Tax Risk When Gift Home to Children

Double Tax Risk When Gift Home to Children

Video looks at gift with reservation rules for inheritance tax and the risk of inheritance tax plus capital gains tax if you gift property and then derive a personal ...

> 7y9m

Inheritance

Excluded Property Trust Non UK Domicile

Excluded Property Trust Non UK Domicile

Video explains how a non UK Domicile foreign national resident in the UK can protect savings, investment, property and wealth outside the UK from UK inheritance using an excluded ...

> 7y9m

Inheritance

1 Million Inheritance Tax Property Allowance Con

1 Million Inheritance Tax Property Allowance Con

Video explores why you should still plan for inheritance despite the new £1 Million Inheritance Tax Property Allowance....

> 7y11m

Inheritance

Power of Attorney Maximum Money Gift

Power of Attorney Maximum Money Gift

Video explains the rules when you are appointed as Power of Attorney and what the Maximum Money Gift you make make to family members and expenses....

> 8y1m

Inheritance

Send Documents Overseas Apostille Seal

Send Documents Overseas Apostille Seal

Video explores the Hague Convention on legalising international documents, sending documents overseas with an Apostille Seal Certificate attached from the Foreign and Commonwealth Office (FCO)....

> 8y1m

Inheritance

Over Ninety Years Old Inheritance Tax Planning

Over Ninety Years Old Inheritance Tax Planning

Inheritance Tax Video. There are not many options for people in their nineties to save inheritance tax. Is this the inheritance saving solution for the over 90s?...

> 8y2m

Inheritance

Summer Budget 2015 Inheritance Tax

Summer Budget 2015 Inheritance Tax

Video looks at the changes to inheritance tax with the main home nil rate band inheritance tax allowance....

> 8y2m

Politics & Economy

Summer Budget 2015 Non UK Domicile Taxation

Summer Budget 2015 Non UK Domicile Taxation

Video looks at the changes to non domicile taxation for inheritance tax on residential property in Summer Budget 2015....

> 8y2m

Politics & Economy

Inheritance Tax Manifesto Promises

Inheritance Tax Manifesto Promises

Video explores the election manifesto promises made by many parties with regard to inheritance tax in UK and why we think it is all a con....

> 8y5m

Inheritance

3000 Pounds Annual Money Gift Explained

3000 Pounds Annual Money Gift Explained

Video explains the £3000 annual gift exemption for inheritance tax plus details of others gifts you can make that are immediately free of inheritance tax....

> 8y6m

Tax Plan

How Much Money Can I Give Away

How Much Money Can I Give Away

Video explores the misconception that you can only give away £3000 per year, it is much more than this, you just need to know the rules on Inheritance Tax....

> 8y6m

Advice Tips

Budget 2015 Deed of Variation Review

Budget 2015 Deed of Variation Review

The Chancellor confirms that the use of Deed of Variation will be reviewed for inheritance tax abuse but we believe it is all about care fees means test planning....

> 8y6m

Politics & Economy

Pension Saves Inheritance Tax

Pension Saves Inheritance Tax

Video looks at how pensions can be an excellent inheritance tax planning and may be now one of your main tools to reduce inheritance tax.Transcript:“Hello there. Pensions as an ...

> 8y7m

Pensions

Too Much Cash In Business Loses Tax Relief

Too Much Cash In Business Loses Tax Relief

Video explains how having too much cash in your business may result in the loss of or reduction in entrepreneurs relief and business property relief.Transcript:“Hello there. The subject for ...

> 8y10m

Inheritance

Death Without A Will Intestacy 2014

Death Without A Will Intestacy 2014

Video looks at what happens if you die without a Will following new laws that started on 1st October 2014.Transcript:“Hello there. Right, some major changes that have gone on ...

> 8y11m

Inheritance

What Happens To Pension on Death April 2015

What Happens To Pension on Death April 2015

What Happens To Pension on Death from April 2015? How Your Pension Fund Paid Is Out To Spouse/Dependants on Death Transcript:"Hello there. Right, so pension death benefits. There’s a ...

> 8y11m

Pensions

Warning When Give Money To Children

Warning When Give Money To Children

Video offers a warning that you should take financial advice when considering a money gift to children...

> 9y1m

Care

What Happens to Private Pension on Death

What Happens to Private Pension on Death

Video to explain what happens to private pensions and personal pensions on death...

> 9y2m

Pensions

Spousal Bypass Trust

Spousal Bypass Trust

A spousal bypass trust will allow the pension fund to be put into a discretionary trust when you die bypassing your spouse and reducing the inheritance tax bill.Your spouse ...

> 9y4m

Pensions

Inheritance Tax Protect Assets

Inheritance Tax Protect Assets

Ashley Clark's seventh tip on how to save on Inheritance Tax...

> 9y5m

Inheritance

Inheritance Tax Pensions

Inheritance Tax Pensions

Ashley Clark's sixth tip on how to save on Inheritance Tax...

> 9y5m

Inheritance

Inheritance Tax Charity & Politics

Inheritance Tax Charity & Politics

Ashley Clark's third tip on how to save on Inheritance Tax...

> 9y5m

Inheritance

Inheritance Tax PET

Inheritance Tax PET

Ashley Clark's second tip on how to save on Inheritance Tax...

> 9y5m

Inheritance

Inheritance Tax Exemptions

Inheritance Tax Exemptions

Ashley Clark's first tip on how to save on Inheritance Tax...

> 9y5m

Inheritance

Inheritance Tax Discounted Gift

Inheritance Tax Discounted Gift

Ashley Clark's fourth tip on how to save on Inheritance Tax...

> 9y5m

Inheritance

Inheritance Tax Loan Trust

Inheritance Tax Loan Trust

Ashley Clark's fifth tip on how to save on Inheritance Tax...

> 9y5m

Inheritance

Inheritance Tax and Property

Inheritance Tax and Property

A pension fund can lend up to 50% of its current value to a sponsoring business/employer.Must be a secured loan, the security must be immovable tangible assets.Must be done ...

> 9y7m

Inheritance

Paying Inheritance Tax When Alive

Paying Inheritance Tax When Alive

Inheritance Tax is not just a tax paid on death, it may be paid when a gift is made in life.Laws around inheritance tax state that you can make ...

> 9y7m

Inheritance

Inheritance Tax Paid With Life Insurance

Inheritance Tax Paid With Life Insurance

Life insurance for reducing the inheritance tax bill is very popular.Premiums can be expensive for those who are a little older. However if you look at your life insurance ...

> 9y7m

Inheritance

Inheritance Tax 7 Year Rule

Inheritance Tax 7 Year Rule

A myth that is thrown around a lot is that you can only gift £3,000 per year. This is not true.The current inheritance tax threshold is £325,000.If you die ...

> 9y8m

Inheritance

Nil Rate Band Without a Will

Nil Rate Band Without a Will

Alistair Darling made it so if you die without using up all of your nil rate band you could transfer the remaining to your spouse or civil partner. Now, ...

> 9y9m

Tax Plan

Sharing Inheritance Tax Allowances

Sharing Inheritance Tax Allowances

Currently if someone dies they have an inheritance tax allowance, where everything under the nil rate band is not taxed.Under rules introduced by Alistair Darling you are able to ...

> 9y9m

Tax Plan

Inheritance Tax Allowance

Inheritance Tax Allowance

Sadly upon death your estate might be taxable. The highest rate for inheritance tax due is 40%.The government do allow some concessions. The inheritance tax nil rate band is ...

> 9y9m

Tax Plan

Changing A Will After Death

Changing A Will After Death

A deed of variation is the ability to change someone’s will after they have passed.Up to 2 years after a person has passed you make can changes their will.All ...

> 9y10m

Law, Wills, Attorneys

Discounted Gift Trust Rate Changes

Discounted Gift Trust Rate Changes

The current income assumption is 5.25%. As from the 1st of December 2013 HMRC will reduce the income assumption to 4.5%.When you invest in this trust, the value used ...

> 9y10m

Tax Plan

Videos Channels

Our Financial Advice Fees Quotes and Shop

Money Tips Cost of Living & Covid

Cost of Living & Covid

Markets & Alerts

Markets & Alerts

Expat & Offshore

Expat & Offshore

At Retirement Options for Pensions

Options At Retirement

Pension Transfers

Pension Transfers

Green Inv ESG SRI

Green Inv ESG SRI

Law, Wills, Attorneys

Law, Wills, Attorneys

Politics and Economy

Politics & Economy