Loans to pay Inheritance Tax
Access 50% of your Inheritance immediately to pay IHT
What is an Executor?
The Executor is the person chosen by the deceased to handle their financial affairs during the Probate process, typically lasting 9-12 months.
The Executor’s role is to administer the Estate and manage key events such as the funeral, handling of debts and taxes, dealing with the property and distributing inheritance to Beneficiaries.
Being an executor can be a demanding role, especially with multiple properties, complexities and parties involved. There are financial burdens that can arise, especially when inheritance tax is due, there are property repairs or renovations and fee and legal fees.
How it works
Efficient solutions at speed
Provira enables you to access up to 50% of the value of the estate within 3 days of application.
Simple and straight-forward pricing
We only charge simple interest (not compound interest) so costs are fixed and transparent and you are not paying interest on the interest. We are FCA regulated.
Confidence in the process
We work directly with solicitors and pay HMRC Inheritance Tax directly. There is no personal guarantee required, no monthly repayments and no early repayment fees.
What is an Executor Loan From Provira?
An Executor Loan offers a fast and effective solution, giving immediate access to funds, using the estate as a form of security. Once Probate has been granted and the Estate has been finalised, the loan is paid back in full.
Provira allows Executors of an Estate immediate access of up to 50% of the overall Estate’s net value, through a product known as an estate advance. Executors can use these funds to cover any estate liabilities (such as legal fees), pay for repairs or renovations and pay Inheritance tax.
For example, if the estate is worth £100,000, you could access up to £50,000.
We charge simple interest (so you don’t pay interest on top of the interest) at a monthly fee of 1.5%-2% for the duration of the loan. The loan is repaid in full once the estate has been settled.
What can an Executor Loan be used for?
Estate Expenses – There are a number of expensive costs when managing an Estate, including a solicitor or Probate practitioner (£1,000-£6,000), accountant fees, application for Grant of Probate (£300), funeral costs (£3,000-£7,000) etc. Fees for solicitors and accountants may be higher if there are complexities with the Estate, disputes, multiple properties or money is also kept abroad.
These fees will need to be paid, and this is before any Inheritance or money from the Estate becomes available.
Pay IHT – Inheritance tax can be a huge expense, with 40% tax on Estates over £325,000 (nil-rate band). With HMRC giving a payment deadline, the Executor may need help paying this to avoid any added interest and penalties being charged. Probate is also not granted until Inheritance Tax or IHT is paid.
Make Necessary Property Improvements – The family of the deceased may wish to sell the property or residence of the person who has passed away. The property may require important improvements and upgrades to make the house more sellable and to improve its value. This is where immediate access to estate funds through an Executor Loan can be useful, helping to pay for any home repairs, restorations and renovations.
What Should I Know About Estate Executor Loans?
No personal security – The loan is repaid directly from the estate, so there are no personal guarantees or charges against your own property, assuming no breach of loan agreement.
No monthly repayments – Whilst monthly interest is added, you are not required to make manual repayments each month or via direct debit. The interest is rolled up and paid in full by the Estate Administrator or Solicitor when the estate has been settled.
No personal liability – If the estate is worth less than the estimated evaluation ,you are not required to provide the shortfall, assuming no breach of loan agreement.
Get your Estate Advance in these 4 simple steps
1
2
Send us your documents
We confirm your eligibility and send you a list of the documents we’ll require, including:
- Copy of Death Certificate
- Copy of Will (if applicable)
- Copy of Grant of Probate/Confirmation/Letters of
Administration (if applicable) - Confirmation of the assets and liabilities within the estate
- Proof of ID, address and bank details
We confirm your eligibility and send you a list of the documents we’ll require, including:
Show list
- Copy of Death Certificate
- Copy of Will (if applicable)
- Copy of Grant of Probate/Confirmation/Letters of
Administration (if applicable) - Confirmation of the assets and liabilities within the estate
- Proof of ID, address and bank details
3
Your application is assessed
Our experienced underwriters assess your application within 48 hours and successful applications receive a formal email offer.
4
Receive your funds
Ready to get started?
Other things to know
- There are no monthly repayments and no early repayment fees.
- The Advance is normally repaid in full when your inheritance is received.
- 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.
- If it turns out that your inheritance is less than expected, then as long as you have kept to the terms of the agreement, you will not be required to pay the shortfall should there be one.
From burden to breathing space – Andrew’s story of rebuilding his life
From burden to breathing space – Andrew’s story of rebuilding his life
Representative example
An Advance of £50,000 with an Arrangement Fee of 2% (£1,000) and an Interest rate of 24% (fixed). Interest is calculated on the advance and the fee and accrues daily.
*representative 26.5% APR.
What are the fees for an Estate Advance?
The Arrangement Fee (which is simply added to the loan) is 1-2% of the loan amount. The interest rate is 1.5-2% 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 above, this would result in a saving of £1,440 compared to all other providers with the same rates and fees that do charge compound interest.
What are the fees for an Estate Advance?
The Arrangement Fee (which is simply added to the loan) is 1-2% of the loan amount. The interest rate is 1.5-2% 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 above, this would result in a saving of £1,440 compared to all other providers with the same rates and fees that do charge compound interest.
We’re here to help
It’s important to us that you have all the information you need to move forward with hope.
or call us on 0203 813 6400
FAQ's
Yes, these loans are considered the same. At Provira, we offer up to 50% of the net value of the overall Estate, provided that Probate is in progress.
You can apply for a loan at pre and post Grant of Probate, Confirmation or Letters of Administration.
Yes, the loan can be paid directly to the Estate Administrator and repaid out of the Estate upon settlement of the Estate.
We can typically approve loans within 48 hours provided that we receive all the relevant information and documentation. We aim to fund successfully approved loans within a matter of days.
We can offer up to 50% of the Estate’s net eligible assets and we 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 including UK domiciled cash, publicly quoted investments and properties that are to be sold. Some other assets may be considered.