Sorting out a loved one's estate has just got more expensive for those who - for whatever reason - missed an Inheritance Tax deadline.

Late payment interest charges have been raised by Her Majesty's Revenue and Customs from nil percent to three per cent 3% and this has been viewed by some commentators as another stealth tax.

A lawyer in the private client department at Stratford-upon-Avon law firm Lodders is advising that this charge can be easily avoided, so long as you are organised and have a good team of advisers who are on top of the situation.

Louise Igoe, an associate in the firm says: "We are aware of the way all this is being viewed, and we can understand it being an unpopular move in the current economic climate."

"HMRC has insisted this is merely harmonising the system, but critics point out these issues come at a time when families may still be grieving, and there can be a particular problem concerning property, with executors forced to raise funds to pay the tax in unfavourable market conditions.

Mrs Igoe said the increase in interest rates would put greater pressure on executors to pay the IHT on time with the initial amount becoming due six months after the end of the month in which the deceased died.

"However, we would emphasise that good lawyers can help executors to administer estates efficiently to avoid such costs".

Until September 1 HMRC were making no charge for the late payment of IHT, which included instances where, in the case of land or property, the taxpayer elected to use the ten year instalment option.

"If on the other hand it turned out that too much IHT is being paid, HMRC will pay interest to the taxpayer at a rate which is one per cent below base - although at the moment it has promised a 0.5% floor.

"Currently therefore it will be 0.5% - slightly better than nothing," said Mrs Igoe.

She said there has been speculation that the charges would levy around £10m for the tax man and it should be noted that this was separate from the penalty system which allowed HMRC to charge penalties if information had been overlooked or the figures proved to be inaccurate.  In some circumstances the penalty could double the actual tax charge.

Mrs Igoe added: "HMRC has insisted, however, that the interest rate rise is 'not a penalty but compensation' for tax paid late. It argues that the outcome will be a fairer system."