Inheritance Tax can be paid by various people under different situations. In most cases individuals make payments using the funds of an estate left by the decedent.
Trustees are typically responsible for the payment of UK inheritance tax thresholds and rates on the assets that are transferred to, or into the form of a Trust. People who receive gifts or inherit from the deceased must pay the tax however this isn't typical.
To determine if tax will be due for an estate it is necessary to first appraise the estate. i.e. determine how much of each asset held at the time of death, including assets, property, possessions such as investments, money, and property and subtract any debts due which include household bills as well as funeral costs.
In some cases, even when your estate is above the threshold, it is possible to transfer assets without paying taxes. Your estate typically does not owe tax on any property you give to your Civil partner or spouse with their residence permanent in the UK as well as on any gifts you make during your lifetime, regardless of whether the sum exceeds the threshold.
In the majority of cases, Inheritance Tax has to be paid within six months of the date of the month at the end of which the deceased passed away and after that time, the interest is charged on the balance due.