Can an executor borrow money to pay Inheritance Tax?

• Executors can borrow money to pay Inheritance Tax using specialist executor loans, also known as Estate Advances or Inheritance Tax Loans.
• When estate assets are tied up in property and investments, these loans are designed to help estates cover costs without executors using their own money or putting down personal collateral
• Provira’s Estate Advance gives executors access to up to 50% of the estate’s net value within days, with no personal guarantees, no monthly repayments and simple interest only

Yes, an executor can borrow money to pay Inheritance Tax, usually through specialist loans called Estate Advances or Inheritance Tax Loans.

One of the biggest financial pressures that executors face when managing an estate is finding the money to pay Inheritance Tax (IHT).

This is because for many estates, a lot of the value is tied up in property, investments or other assets that can’t be accessed for cash straight away.

The problem is that HMRC usually expects at least some of the Inheritance Tax to be paid before probate is granted. But without probate, executors can’t sell property or other estate assets to raise the money. On top of this, Inheritance Tax is due six months after the date of death.

At a time where a lot of executors are already struggling with grief, trying to find tens or even hundreds of thousands of pounds within a matter of months can feel overwhelming.

The good news is that executors have other options.

At Provira, our Estate Advance gives executors access to up to 50% of the estate’s value within days, helping cover estate costs like IHT, legal fees and property expenses.

We charge no early repayment fees, don’t ask for personal collateral and only charge simple interest, not compound interest.

If you’d like to secure a loan to pay Inheritance Tax, start your application today.

When is Inheritance Tax due?

Inheritance Tax is normally due by the end of the sixth month after the person died. For example, if someone passed away in January, HMRC would normally expect payment by 31 July.

This creates one of the biggest problems for executors.

Many estates take a lot longer than six months to administer, especially if they involve property sales, investments, assets abroad, businesses or disputes between beneficiaries.

What if you can’t afford to pay Inheritance Tax?

If Inheritance Tax is not paid by the deadline, HMRC will start charging interest on the outstanding balance.

As of 27 August 2025, the HMRC interest rate on late Inheritance Tax (IHT) payments is 8.0%, which accrues daily.

This puts a lot of pressure on executors.

In some cases, HMRC may agree to allow payment in instalments, but this still doesn’t solve the problem if a lot of the estate’s value is tied up in illiquid assets. 

This is why many executors explore options like Estate Advance Loans instead. 

How do executors pay Inheritance Tax?

Executors can pay Inheritance Tax in a number of different ways.

Sometimes, money can be sent directly from the deceased’s bank account to HMRC through the Inheritance Tax Direct Payment Scheme.

In other cases, estates may use:

• Cash savings or pension pots
• Investment portfolios once stocks have been sold
• Money from property sales
• Instalment arrangements with HMRC

The problem is that many estates just don’t have enough liquid cash available quickly enough to pay the whole bill. If an estate includes a family home, a buy-to-let property, land, shares or assets abroad, executors might not be able to sell them quickly enough to release the funds.

This is where Executor Loans can become extremely useful.

What is an Executor Loan?

An Executor Loan, often called an Estate Advance or Inheritance Tax loan, is a loan designed specifically for estates that contain high-value assets, but not enough cash to pay the taxes.

Rather than relying on the executor to pay out of their own finances, the loan is taken out against the net value of the estate.

The reason it’s such a popular option is because it’s designed to release cash from the estate, without asking the executor to be personally liable for repayments. The loan is taken out against the estate as the collateral, meaning that it is the estate that pays back the loan once probate is complete, not the executor.

In many cases, executors use Estate Loans to cover:

• Inheritance Tax
• Legal fees
• Funeral expenses 
• Other estate expenses

At Provira, executors can access up to 50% of the estate’s value within just a few days, without any need for an executor to put their own personal finances on the line.

Apply for an Estate Advance today.

Are executors personally liable for these loans?

No, the main difference between a specialist Estate Advance and a personal bank loan is that the loan is secured against the estate, not the executor personally.

With Provira’s Estate Advance:

• No personal guarantees are required
• No monthly repayments are required
• No personal collateral is needed

The amount that can be borrowed is based on the estate’s value, not the executor’s income or personal credit history.

Importantly, if the estate – once everything is sold – is worth less than expected, executors are not personally responsible for covering any shortfall.

This helps remove a huge amount of personal risk at what is already a stressful time.

How expensive are executor loans?

The cost of an executor loan depends on the lender, the amount being borrowed and how long the estate takes to settle.

At Provira:

• Arrangement fees are normally 1-2% of the loan amount
• Interest is charged at 1.5-2% per month
• Interest is charged using simple interest, not compound interest, so the same amount is applied every month

This is important because with compound interest, executors may end up paying interest on top of interest as time goes on. With simple interest, the costs stay a lot more predictable and transparent.

How Provira can help executors looking for money to pay Inheritance Tax

Being an executor comes with a lot of responsibility, especially when an estate is asset-rich but cash-poor.

Trying to manage probate deadlines, family expectations and a big Inheritance Tax bill can be a big burden to bear, especially at an already difficult time.

That’s where Provira’s Estate Advance can help.

We give executors access to up to 50% of the estate’s value within days, helping them cover estate costs like Inheritance Tax without needing to rely on personal borrowing or personal collateral.

Our Estate Advance is designed to be:

• Fast, with funds often available within days
• Easy, with simple interest rather than compound interest
• Flexible, with no monthly repayments or early repayment fees
• Supportive, with a caring team with you every step of the way

If you are an executor struggling to access the money needed to pay Inheritance Tax or other urgent estate expenses, speak to the Provira team to start your application today.