I’m sole executor on an estate which has c. £125k in IHT left to pay (five instalments of around £25k) but has now run out of liquid assets to leave just bricks & mortar which the two beneficiaries (both in their mid-50s) don’t wish to sell.
The bricks & mortar is a house which has been split into two flats. The downstairs is Freehold and is occupied by the beneficiaries of the estate. The upstairs is Leasehold and rented-out. However, the ownership structure is a tad complex - the estate only owns one-third of the bottom flat (encumbered by an IOU and net of that debt worth around £240k) and half the top flat (unencumbered and worth c. £290k). Both these portions will pass into a Will Trust once the tax has been paid. The remainder of the two flats belongs to either older family trusts (which, ideally, we don’t want to wind up) or to one of the estate beneficiaries absolutely. These older trusts and the beneficiary would be prepared to join any arrangement so as to secure the funding.
Ideally, the loan would be made to me as executor, secured against the above remaining estate assets and then assigned to the trustees of the new Will Trust. We are seeking a roll-up loan (for the joint lifetimes of the beneficiaries) as there is no disposable income with which to meet the interest cost.
Can any forum member put me in touch with a broker who can assist in placing the loan please?
Paul Storrie
Storrie and Company