Discussion in the office has led me to post this on here to seek opinion on a hypothetical scenario…
If a director has an overdrawn directors loan account, the amount owed is a debt in the Estate. The Executors are responsible for paying the amount owed back to the Company.
If the deceased is 100% shareholder, the amount of the loan is treated as an excepted asset for BPR purposes.
What happens if the deceased is not a shareholder? Is there an IHT advantage here and for some planning around this?
Grateful for some thoughts and commentary on this.