TO PAY IHT OR OTHER
If you are an Executor of an estate facing an Inheritance Tax bill (or other Estate liability) without access to the necessary funds then we can help.
Many estates can take up to 12 months to administer, yet Inheritance Tax needs to be paid within 6 months from death and probate/letters of administration can’t be obtained without paying the tax. Without probate you can’t sell assets within the estate to raise the funds to pay the tax.
Whilst it may be possible to agree with HMRC to pay the Inheritance Tax via instalments, this can be complex, you will need to have sufficient funds to pay the first instalment and it may not be the most cost-effective option. This is when we can help.
The Estate Advance enables Executors immediate access to up to 60% of the value of the estate. Not only can the funds be used to pay Inheritance Tax they can also be used to pay other estate expenses including the repair/renovation of property, legal fees etc.
Applications are assessed solely on the value of the estate. This means there is no risk to you. No personal guarantees or charges over property are required. If it turns out the value of the estate is less than expected you will not be required to pay the shortfall should there be one
The Advance is normally re-paid in full when the proceeds from the estate are realised. There are no monthly repaymentsand no early repayment fees.
The Arrangement Fee (which is simply added to the loan) is 1.5% of the loan amount, plus 1.5% interest per month for as long as the Advance is outstanding.
Crucially, we only charge simple interest rather than compound interest. This means you are not paying interest on the interest. In the example below, this would result in a saving of £708 compared to all other providers with the same rates that do charge compound interest.
An advance of £50,000 will incur an Arrangement Fee of 1.5% (£750). Interest is calculated on the advance and the fee. Interest accrues daily, based on an annual rate of 18.2% (fixed). Assuming the Estate takes 12 months to liquidate, you would owe £9,220 in interest plus £50,750 in capital and fees, resulting in a total balance owed of £59,970 and a representative 19.9% APR.
An Estate Advance can be used to pay IHT, repair/renovate property in the estate, pay legal fees or other estate liabilities.
To apply, complete a short online form or call us on 0203 813 6400. We aim to pre-approve eligible applications within 48 hours.
Applicant and Administrator receive a document checklist including:
- Copy of Death Certificate
- Copy of Will (if applicable)
- Confirmation of the assets and liabilities within the estate
- Proof of ID, address and bank details
Provira’s underwriters assess the application. Successful applications receive a formal email offer.
Loan documents are issued and signed (normally electronically). Funds are released
When the estate is settled the loan is repaid to us, normally by the Estate Administrator or the professional firm responsible for the sale of a property within the estate
Traditionally, personal loans require the borrower to sign a personal guarantee or to provide security to the lender over their assets, such as property. In the event that the borrower defaults, the lender can then take possession of personal assets and sell them to recover what they are owed. Estate Advance is different. The product was designed to underwrite Estates, not borrowers, so you won’t be asked for any form of personal security. The lender’s claim is against the assets of the Estate and in the event those assets sell for less than they are owed, that’s their loss. There are no monthly payments and no early repayment fees.
The Advance can be used to pay Inheritance Tax or other estate liabilities.
That doesn’t matter, because underwriting is focused on the Estate (and its assets/liabilities) rather than your personal credit rating. The application process therefore ensures that there’s a clear link between applicants (i.e. Executors) and the Estate, as well as establishing the estimated value of eligible assets within the Estate, to advance funds against.
No. The decision will be based on the assessment of the Estate. Therefore, your employment information is not relevant.
That’s OK and is not your risk, it’s the lender’s. This is why the lender ensures that it understands the Estate as part of its underwriting process. But if the lender gets it’s assessment wrong, they bear any associated loss.
The lender will estimate the value of the Estate’s eligible assets less any liabilities owed, such as the Administrator’s fees, mortgages over property within the Estate, etc. This gives the Estate’s estimated net eligible asset value.
Eligible assets are typically (UK domiciled) cash, as well as publicly quoted investments and properties that are to be sold. The lender may consider other assets by exception. You will then be offered up to 60% of your portion of the Estate’s net eligible assets. You may, of course, take less.
The Arrangement Fee is typically 1.5% of the loan amount and is added to the loan. The interest rate is 1.5% per month.
Unlike other providers we only charge simple interest, not compound interest. That means you are not paying interest on the interest. Combined with the fee structure detailed above it makes our Estate Advance the best value available.
That’s absolutely fine. Any one Executor/Personal Representative is able to take out an Estate Advance.
No – as the Executor/Personal Representative you are entitled to take out an Estate Advance.
That’s OK. The Inheritance Tax will still need to be paid regardless of whether or not there is a valid Will. Thus, you can still apply for an Estate Advance.
We do need a professional Estate Administrator to confirm the assets and liabilities in the Estate. This would typically be the firm that is assisting with obtaining Probate / Letters of Administration.
We also require a professional firm to be responsible for the distribution of the asset(s) that will enable the Advance to be repaid. Where this involves the sale of a property, it would normally be the conveyancing solicitor.
It is fine if this is one firm or two separate firms.
The loan is repaid when the assets from the estate are realised. There are no early repayment fees.
You will have 14 days to cancel your Advance from the date you enter into the loan agreement. Should you elect to do so, within 30 days after cancelling, you will need to repay the amount of the Advance together with accrued interest, at the interest rate set out in your loan agreement, from the date the Advance was provided until the date of repayment.
Provira is a credit broker and manages and assists customers with the application process for Estate Advance from Funeral Safe Ltd as lender and provides Estate Advance funds to customers. As well as entering into the loan documents, customers will grant the lender the ability to receive the inheritance on the customer’s behalf, in order to deduct any payments due to them for the Estate Advance they granted to the customer.
Provira’s founding team and investors are experienced financial professionals, having successfully launched and invested in many innovative specialty finance businesses. We are passionate about building disruptive businesses that focus on benefiting the consumer. We’ve worked for and with some of the largest and most reputable financial institutions globally.
I still have questions, what should I do?
That’s OK, we’re here to help however we can.
For example, we can help with questions about our application process or our credit broking activities. Email us anytime on [email protected] or call us on weekdays (excluding bank holidays) between 9am to 6pm on 0203 813 6400. If for whatever reason we can’t take your call, we will get back to you as soon as possible.
If you have specific questions on your loan documents, your Estate Advance, or the activities of the lender, please contact a Funeral Safe representative on