Can I get an Inheritance Tax bridging loan?
Yes, you can get a bridging loan to help you pay Inheritance Tax (IHT). These loans are designed to cover the IHT bill, which is often due within six months of death.
When a loved one passes away, dealing with their estate can feel like a stressful task. It’s a situation that thousands of families face every year; Inheritance Tax is due just six months after someone passes away, but it can often take nine to twelve months for probate to be completed and cash to be released. That creates a very real and very stressful gap.
If you are looking for ways to pay Inheritance Tax, you might be asking yourself: Can I get a bridging loan to pay IHT? The answer is yes. In fact, it’s one of the most popular ways that families cover their IHT bill when most of the estate is tied up in assets.
At Provira, we help families access funds quickly, so they can prevent probate delays and move forward with confidence. If you need support right now, you can start an application or speak to our team for a no-obligations quote.
To find out more, fill in our form and speak to the team today.
What is a bridging loan for Inheritance Tax?
A bridging loan for Inheritance Tax is a short-term loan that helps families pay their IHT bill before they have access to money in an estate. These loans are also called Estate Advances or Probate Loans.
When someone passes away, HMRC expects the tax to be paid within six months, but probate usually takes quite a bit longer. This means the money needed to pay the tax is locked up in the estate, which creates a catch-22.
A bridging loan helps ‘bridge’ this gap by allowing families to access the funds quickly so that the tax can be paid on time. Once probate is granted and assets in the estate can be sold, the loan is paid back. In short: a bridging loan for Inheritance Tax is simply a way to unlock the money you need during a difficult and often stressful waiting period.
If you are ready to understand your options, you can speak to our team today to find out more.
Are Inheritance Tax bridging loans secured against your property?
It depends. With some lenders, the executor will have to put their property on the line as collateral to secure the bridging loan. This is typical of bridging finance, which usually requires a first-charge over a property to secure the loan.
However, with Provira, we never ask you to put down your property as collateral. Instead, we lend you money against the net value of the estate, usually up to 50%.
With Provira, you never have to worry about late repayment fees, compound interest or unclear terms; that’s why our bridging loans for Inheritance Tax are so popular with families across the UK.
To click here to find out more about our bridging loan terms.
How an Inheritance Tax bridging loan works
A standard IHT bridging loan is a short-term loan that allows families to access money quickly. Here’s how it normally works.
1. The executor of the estate applies
The executor of the estate applies for the loan and provides details about the estate value.
Then, Provira confirms if you are eligible.
If successful, the offer is shared within 48 hours and signed by both parties, with clear terms laid out for full transparency.
3. Funds are released
Funds are released, often within just a few days – allowing you to meet HMRC’s deadlines.
For the duration of the loan, you will receive regular support and financial statements at every step, and you will have the same dedicated underwriter throughout the journey.
4. Loan is repaid
Once probate has been granted and the estate assets become available, the loan is repaid by the executor. If there are delays, there is no problem, as the loan can remain in place for as long as you need.
Why do people use bridging loans to pay IHT?
Families consider using bridging loans for IHT for a number of reasons. Some of these include:
- To allow probate to be granted by paying the first instalment of IHT
- They are fast, allowing them to pay IHT within HMRC’s deadline to avoid any interest.
- To stop a forced sale of the family home at a price that is lower than the market value.
- To buy them more time to make decisions regarding the estate.
- To prevent taking out a loan that requires putting property down as collateral.
In short, a bridging loan for IHT buys you a little bit of breathing room when you need it most.
How Provira can help: A better alternative to normal bridging loans
With Provira, unlike our competitors, our bridging loans for Inheritance Tax will never ask you to put your home down as collateral or charge you compound interest.
With Provira’s bridging loans, you get:
- Up to 50% of the estate net value upfront
- Funds are released within as little as 3 days
- Simple interest only, so you never pay interest on interest
- No personal guarantee
- No monthly repayments
- No early repayment fees
- Repayment taken directly from the estate
- FCA regulated protection
If you want to understand how much you could access, use our calculator now, or apply now in minutes.
Use our short online form to get started.
Bridging loans to pay Inheritance Tax
You can get a bridging loan to pay Inheritance Tax. In fact, it’s a commonly used option when probate delays are making cash hard to access. The key is choosing a lender with transparent terms who will never ask you to put your personal property at risk.
At Provira, our bridging loans for Inheritance Tax are designed to help remove stress, protect your finances and move forward during an already difficult time.
Speak to our caring team today and start your application now.
