Mark Wood

My wife and I are executors for my deceased father-in-law's estate, which is under the inheritance tax threshold. We have put the estate funds into an interest-paying savings account while we complete administering the estate. We did try to open an "executor account" but the high street banks we contacted no longer do these types of account. The savings account is in our names but was opened specifically to hold the estate funds. We also have our own savings, the interest from which will use up our tax-free allowance, and we pay higher rate income tax. Do we have to pay higher rate tax on the interest on the estate monies, given that some of the beneficiaries are not higher rate tax payers, and some do not work so would get the standard savings tax allowance.