When someone dies, their executor faces a series of deadlines that most people do not know about until they are in the middle of them. The most punishing is the 6-month inheritance tax deadline - a hard date that does not wait for probate, does not wait for property sales, and does not care that you are still grieving.
Understanding these deadlines is essential for executors. Miss them and you face interest charges, penalties, and personal liability.
The key deadlines for executors
| Deadline | What it's for |
|---|---|
| 6 months after death | Inheritance tax payment due |
| 12 months after death | Deadline for submitting IHT return without penalties |
| Variable | Apply for grant of probate (no fixed deadline, but needed to access assets) |
| ~12 months after grant | Informal "executor's year" - a convention, not a formal legal deadline |
The 6-month inheritance tax deadline
Inheritance tax (IHT) is due 6 months after the end of the month in which the person died.
Example: If someone died on 15 March 2026, the IHT deadline is 30 September 2026.
This is a hard deadline. Interest starts accruing from the day after if payment is not made in full.
The catch: you often cannot access the money yet
Here is what makes this deadline brutal for executors: you usually need a grant of probate to access the deceased's bank accounts and investments. But probate can take months to obtain. And you cannot get probate until you have submitted the IHT forms and paid (or arranged to pay) any tax due.
This creates a circular problem:
- You need money to pay IHT
- You need probate to access the money
- You need to pay IHT to get probate
Solutions executors use
Direct Payment Scheme: Some banks will release funds directly to HMRC to pay IHT before probate is granted. You need to complete form IHT423 for each bank.
Instalment option: IHT on certain assets (property, business assets, some shares) can be paid in 10 annual instalments. Interest still applies, but it spreads the immediate burden.
Personal funds: Executors sometimes pay IHT from their own funds and reimburse themselves from the estate later. This is common but requires cash availability.
Loans: Some executors take out loans secured against the estate to pay IHT. There may be limited relief available for interest on loans used to pay inheritance tax in some circumstances and for some periods - seek specialist advice if considering this route.
The IHT return deadline: 12 months
The full inheritance tax return (form IHT400) must be submitted within 12 months of the death. If submitted later, HMRC can charge penalties.
For deaths on or after 1 January 2022, simpler estates may be able to use the excepted estates process and avoid the full IHT400 - but the 6-month payment deadline still applies if tax is due.
Grant of probate: no fixed deadline, but consequences for delay
There is no legal deadline to apply for a grant of probate. However:
- You cannot access most assets without it
- Beneficiaries may become impatient (or take legal action)
- Some assets (like property) depreciate or cost money while waiting
- HMRC interest continues to accrue on any unpaid IHT
Current probate processing times
Probate applications are processed by HMCTS (HM Courts & Tribunals Service). Processing times vary significantly and change over time:
- Digital applications: Often quicker, but still variable
- Paper applications: HMCTS guidance says they will contact you within around 12 weeks for postal applications
- Complex estates: Can take several months
These are processing times after submission. Gathering information, valuing assets, and completing the IHT forms can take months before you even apply.
What catches executors out
Interest runs from month 6, not from when you apply
IHT interest is charged from 6 months after the end of the death month, regardless of when you submit your application or receive probate. There is no grace period while you wait for HMCTS.
Practical takeaway: Pay what you can by month 6, even if you are still waiting for probate.
Property valuations take time
If the estate includes property, you need a valuation for IHT purposes. Getting accurate valuations, especially for unusual properties, can take weeks. HMRC can challenge valuations years later.
Practical takeaway: Start property valuations immediately after death.
The nil-rate band is not automatic for unmarried couples
The transferable nil-rate band (which can double the IHT threshold to £650,000) only applies to married couples and civil partners. Unmarried partners do not benefit, regardless of how long they lived together.
Practical takeaway: Check whether the transferable nil-rate band applies before assuming the estate is below the threshold.
Gifts in the last 7 years count
Gifts made in the 7 years before death may be subject to IHT (potentially reduced by taper relief). Executors need to investigate and declare these - even if the person who died did not keep records.
Practical takeaway: Ask family members about significant gifts. Bank statements can reveal transfers.
Executors can be personally liable
If an executor distributes the estate before paying IHT (or other debts), they can be personally liable for the shortfall. This is not theoretical - HMRC does pursue executors.
Practical takeaway: Do not distribute assets until all tax and debts are cleared or provided for.
The residence nil-rate band has conditions
The residence nil-rate band (up to £175,000 extra) only applies if:
- The estate includes a residence
- It passes to direct descendants (children, grandchildren)
- The estate is below £2 million (tapers above this)
Leaving property to siblings, nieces/nephews, or charities does not qualify.
Practical takeaway: Check the conditions carefully - not every estate qualifies.
Timeline for a typical estate
| Stage | Typical timeframe |
|---|---|
| Register death, obtain death certificates | Week 1 |
| Notify banks, insurers, pension providers | Weeks 1-4 |
| Gather asset valuations | Weeks 2-8 |
| Complete IHT forms | Weeks 6-12 |
| Pay IHT (or arrange payment) | By month 6 |
| Submit probate application | Weeks 8-16 |
| Receive grant of probate | Weeks 12-24 |
| Collect assets, pay debts | Months 6-12 |
| Distribute to beneficiaries | Months 9-18 |
Complex estates (business interests, overseas assets, disputes) can take significantly longer.
What executors should do first
- Register the death and order multiple death certificates - you will need them for banks, insurers, and HMCTS
- Start asset valuations immediately - especially property
- Investigate gifts made in the last 7 years - check bank statements
- Contact banks about the Direct Payment Scheme - before you need the money
- Pay or arrange IHT by month 6 - interest starts the next day
- Do not distribute until debts and tax are cleared - personal liability is real
- Keep detailed records - you may need to account to beneficiaries or HMRC
Need to calculate your IHT deadline?
Use our calculator to work out the exact date, accounting for the "end of month" rule.
Calculate your deadline -> Open the calculator
Frequently Asked Questions
Q: When is inheritance tax due? A: 6 months after the end of the month of death. If someone died on any day in March, IHT is due by 30 September.
Q: What happens if I cannot pay IHT on time? A: Interest accrues from the day after the deadline. For certain assets (property, businesses), you can elect to pay in 10 annual instalments - but interest still applies.
Q: How long does probate take? A: It varies widely. HMCTS guidance says they will contact you within around 12 weeks for postal applications, and digital applications can be quicker - but straightforward estates still commonly take several months end to end.
Q: Can I access bank accounts before probate? A: It varies by bank. Some will release small balances or pay HMRC directly under the Direct Payment Scheme, but limits and policies differ.
Conclusion
The hardest thing about being an executor is that the tax clock starts immediately and the money is usually locked behind the probate you have not received yet. The Direct Payment Scheme exists to break that deadlock - use it. And never distribute a penny until the tax position is clear. HMRC's pursuit of executors who do is not theoretical.
Sources & Further Reading:
- Gov.uk - Inheritance Tax
- Gov.uk - Applying for probate
- Gov.uk - Pay Inheritance Tax
- HMCTS - Probate application processing times
This guide is for informational purposes only and does not constitute legal or tax advice. Always verify deadlines independently and seek professional advice if unsure.
