Can an executor take out a loan on behalf of the estate?

A probate lawyer, or probate solicitor, manages the legal and financial administration of a deceased person’s estate. 

For smaller, simple estates, most people don’t tend to use one. But for higher value, complex estates, professional legal support is often necessary.

Unfortunately this support comes with a cost. 

And when an executor is already facing mounting estate expenses such as funeral costs, property repairs, and a looming six-month deadline for an Inheritance Tax bill, it can prove a difficult financial burden to bear.

This is where Provira can help.

Our Estate Advance provides up to 50% of the net value of the estate within days, allowing executors to cover upfront legal fees and other urgent estate costs.

The loan is simply repaid in full once funds have been released from the estate, so you can get the support you need right now.

We also only charge simple interest, not compound interest, and don’t ask for monthly repayments or early repayment fees.

Plus, our supportive compassionate team will handle all payments to HMRC directly, so you have one less thing to worry about.

To explore our Estate Advance further, get in touch with our team today.

What does a probate lawyer do?

A probate lawyer supports on everything to do with dealing with the estate of someone who’s died. 

This includes obtaining the grant of probate, estate administration, tax guidance, beneficiary distribution and possible dispute resolution.

Let’s explore each area:

1. Obtaining grant of probate

A probate lawyer will help to have probate granted which is required to deal with an estate. If there’s no will, they support on Letters of Administration. If you don’t complete probate, assets can’t be released from the estate.

1. Estate Administration

They’ll also track down and have all estate assets valued, and provide guidance on settling outstanding debts and liabilities before the estate is distributed. 

1. Tax Management

A key moment in the probate calendar is settling the Inheritance Tax bill. A probate lawyer supports on calculating and submitting the IHT return to HMRC. 

This is also the point at which Provira interacts the most with probate lawyers. If an estate doesn’t have the funds to cover IHT, our Inheritance Tax Loan provides a simple financial solution that a probate lawyer can recommend to their client.

1. Distribution of the estate

Making sure assets are distributed according to the will or intestacy rules is a key responsibility of a probate lawyer, although executors are legally responsible for the correct process for this. 

1. Dispute resolution

If the will is contested or a beneficiary disagrees with how the will is being distributed, the lawyer will provide the required legal representation to resolve the issue. It’s worth keeping in mind that contentious probate is a specialist area that not all probate solicitors can support on.

Do you need a solicitor for probate?

Not always, but they’re needed more than you might think. It all depends on how the estate is structured.

For small, simple estates

If the estate has a modest amount of money, no owned property, an existing will and a low to non-existent Inheritance Tax bill, probate will be a relatively smooth sailing process. 

Gov.uk also offers a simple self-service way to complete your probate application if you don’t have legal support.

For higher value, complex estates

If an estate is made up of multiple assets including properties, business interests, agricultural assets, foreign assets, there’s no will, or disputes open up between beneficiaries, legal support will definitely put the estate at an advantage. 

It’s useful to think about whether or not your estate will need legal guidance when planning your estate so that you can make sure the cost is factored in.

How much does probate cost?

It depends on whether you use a probate lawyer or not. And this cost depends on how long probate takes. 

If you apply for probate yourself you’ll need to cover a £300 court fee if the estate is valued over £5000. For estates valued under this threshold, there’s no fee. 

If you use a professional, support costs are going to sit a lot higher than this.

When using legal guidance, you’ll need to cover a fee that can be roughly 1-5% of the estate value. If the estate is particularly complex, contains multiple properties or runs into disputes, these could all push the cost even higher.

Depending on what provider you choose to work with, they can offer either hourly fees or fixed-fee packages. 

For more complex estates, the professional support is worth it simply to avoid any extra hidden costs. 

The time that goes into navigating the process, cost of potential process errors, and possible penalties from HMRC if an Inheritance Tax return is done incorrectly are all legitimate risks. 

And when these costs all fall on top of a looming Inheritance Tax bill that needs to be paid within six months of date of death, it can be a heavy load for an executor to bear. 

This is where Provira can help. 

Our Estate Advance gives executors almost immediate access to up to 50% of the net value of the estate so they can cover legal fees and other urgent estate expenses straight away. 

We also keep costs as low as we can for you, through:

• Only charging simple interest, not compound interest
• Not charging early repayment fees if probate completes sooner than expected
• Not asking for monthly repayments. The loan is simply repaid in full once the estate has been settled.

Plus, we handle all HMRC payments directly and you’ll have a compassionate member of our supportive team dedicated to your case to guide you through it from start to finish.

To get in touch, fill out our form today. It takes just a few minutes.

How can Provira help if you want to hire a probate lawyer

Hiring a probate lawyer is often necessary as the probate process can be tricky to navigate. 

From knowing what forms to fill out, valuing assets and locating beneficiaries, to dealing with foreign assets and will disputes, having the right legal guidance during an already emotional time provides invaluable reassurance. 

But when legal fees sit at up to 5% of an estate’s value, the cost can mount up fast. And that’s before taking into consideration the six month deadline for Inheritance Tax.

By taking out our Estate Advance, you can make sure you get the right legal guidance and keep probate on track by:

• Getting a probate lawyer straight away, without being held back by a lack of estate funds
• Covering other urgent costs as soon as they crop up
• Ensuring your Inheritance Tax bill is paid to HMRC on time

Because we offer:

• To work directly with your solicitors, leaving you to focus on more important things
• Simple interest charges, not compound interest, keeping costs low
• No early repayment fees, so you have one less thing to worry about
• No monthly repayments. The loan is paid off in full direct from the estate once funds are released
• An underwriter dedicated to your case to guide you through it from start to finish.

Ready to get started? Fill out our form today and a member of our team will be in touch very soon.