thewealthworks Customer Support Portal

Overview

There are a variety of circumstances where interest becomes payable on the inheritance tax (IHT) of an estate. These instructions are designed for circumstances where the interest is due for payment. In the event you wish to make a provision for future interest payments please contact the support team, quoting our reference CS20130, and we will assist you with setting those up.

Posting Interest on IHT

Firstly, these instructions presume that a grant of probate has been received, the date of the grant has been entered in Troika (within Wealth Management, Client tab and the menu option for Estate Details – Edit), and you are now posting ‘Additions’ (correctives) on the system.

Within Load Data use the drop down list, or arrows, to advance from the date of death period, to the administration period. This will then activate the Administer button, and the Additions button will become unavailable.

Click on the Administer button.

To record the payment of the interest, it is recorded as an activity on a bank account. Select the Bank Accounts radio selection button, and then select ‘Other bank accounts – payments’ from the available Transaction Type drop down list:

The list of accounts shown in the Account drop down list will depend on what has been added to your system. In this example there is an IHT Loan Account, but you will process the payment from whichever bank account will be making the payment from.

In the event it has not been added to the estate, click on the money icon and add in the new bank account’s detail.

The Analysis list is divided into an alphabetical lists of ‘Probate Capital – Payments’, followed by ‘Probate Income – Payments’. Select Interest on Inheritance Tax from the Probate Income-Payments list:

The description that will appear on your accounts will default to ‘Interest on Inheritance Tax’. In the event this should be overwritten, tick the Overwrite Description box and enter the required description, up to 40 characters long.

Enter the interest amount paid in the Balance field. Click Add, and confirm that you wish to post the transaction.

The Load Data summary will update with the interest payment and the Trial Balance will show the transaction entered:

The balance sheet on the accounts would show as:

The income account would show as:

This article is confirmed to be applicable from Troika release 2.08.023.