Inheritance Tax Challenges for Executors in the US and UK

In New Jersey, an estate worth $2.5 million left by a hypothetical John Doe faces a 15‑16% inheritance‑tax levy. Because most assets pass directly to heirs outside probate, the executor must gather funds from multiple beneficiaries to cover taxes that exceed the residuary estate, while the state retains a lien on the property until tax waivers are obtained.

In the United Kingdom, families paid a record £8.5 billion in inheritance tax in the 2025/26 fiscal year, a 3.6 % rise from the previous year. Experts warn that common planning mistakes—such as not using the £325,000 nil‑rate band, misunderstanding the residence nil‑rate band, and poorly timed lifetime gifts—can significantly increase liability. Proper use of exemptions, gifting allowances and income‑gift rules can reduce the tax burden.