There’s normally no Inheritance Tax to pay if either the value of the estate is below the £325,000 threshold or, the testator left everything above the £325,000 threshold to a spouse, civil partner, a charity or a community amateur sports club.
The standard Inheritance Tax rate is 40% and is only charged on the part of the estate that’s above the threshold. As executor you will be required to settle any outstanding debts owed by the deceased on behalf of the estate. If you do not have the funds available,
you can contact their bank, and may be able to request that a Direct Payment Scheme (DPS) be set up. This will allow the withdrawal of available funds to pay off this debt. If there are not enough funds in either your accounts, or the accounts of the deceased, then it may be necessary to take out a loan to cover these costs.