Is a Probate Loan secured against my home?
No, Probate Loans are not secured against your home. Instead, they are secured against either the estate, or your portion of the inheritance, depending on what you use it for.
When a loved one passes away, it can take months, sometimes over a year, before inheritance funds are released through probate. In the meantime, expenses like Inheritance Tax, funeral costs or property maintenance still need to be paid, which can make the process stressful at an already difficult time.
One of the biggest benefits of Probate Loans is that they allow beneficiaries and executors to access inheritance funds before probate is complete, without needing to put their home at risk.
At Provira, executors and beneficiaries can access up to 50% of the value of the estate or their portion of the inheritance within days.
If this sounds like it could benefit you, get in touch with the team today to find out more about Provira’s Probate Loans.
What is a Probate Loan?
A Probate Loan, also known as an Inheritance Loan or an Estate Advance, gives executors and beneficiaries early access to funds from a deceased person’s estate before the probate process is finalised.
Probate itself is the legal process of actioning a will, paying any debts and distributing assets to the named beneficiaries. It can sometimes take up to a year, which can put a lot of financial pressure on executors and beneficiaries.
A Probate Loan is a way to bridge that gap. However, it exists in a few forms, depending on what it is used for:
Beneficiaries can use a Probate Loan to access a portion of their inheritance early, usually up to 50%. This is also known as an Inheritance Advance or Inheritance Loan.
Executors can use it to pay for estate-related costs like Inheritance Tax, legal fees or property repairs. This is also known as an Estate Advance or Executor Loan.
In both cases, the loan is secured only against the estate, never against your personal home or assets. For that reason, it’s a much lower risk loan than a bridging loan or personal loan, which is usually secured against personal assets.
Is a Probate Loan secured against my home?
No, with Provira, a Probate Loan is never secured against your home.
That’s because the loan is based on the value of the estate or your portion of the inheritance. Because the money is guaranteed to come through at a later date, we don’t ask you to put down any assets as collateral.
And if the estate value ends up being lower than expected, we won’t even ask you to cover the shortfall.
When probate is complete and the estate is paid out, the loan, as well as all interest and fees, is paid back to us automatically from the estate, not from your own money or savings.
How are Probate Loans different from other loans?
Probate Loans are different from other loans in a number of ways, including:
- They don’t take your income or credit score into account; the loan is based entirely on the value of the estate.
- They don’t have early repayment fees or fixed terms. If probate is delayed, you won’t be penalised.
- You don’t pay them back monthly; they get paid back at the end of the loan term, once probate is complete.
- They are quick, with funds often reaching you within days.
What are the different types of Probate Loans?
There are two main types of Probate Loans, these are:
Inheritance Advance (for beneficiaries)
If you’re going to inherit money from an estate, an Inheritance Advance lets you access up to 50% of your future inheritance now.
You can use the funds however you want, whether you want to pay off debts, school fees, take a holiday or just take some financial pressure off.
Once probate is complete, the money is paid back from your inheritance.
Executor Loan (for executors or administrators)
Executors are responsible for managing an estate, which means having to pay Inheritance Tax and other costs before any assets can be sold or paid out.
This can be a tricky position to be in, as Inheritance Tax needs to be paid within 6 months of the person’s death. If money is tied up in property, this can cause big delays.
To help with this, an Executor Loan gives executors immediate access to funds based on the value of the estate as a whole. They can use this money to pay Inheritance Tax, funeral expenses, property repairs or legal fees.
Like inheritance advances, executor loans are paid back directly from the estate once assets are sold, not from the executor’s personal funds.
How to apply for a Probate Loan
Applying for a probate loan with Provira is easy:
- Start your application online by filling out the form here.
- One of our dedicated underwriters will be in touch to ask you to share basic estate documents like the will, death certificate or details of assets. If you have any questions, they will be more than happy to help.
- You’ll then be given a clear offer, outlining the loan amount, interest and fees.
- Once accepted, the money is transferred directly to your account.
- When probate is complete, the loan is repaid automatically from the estate.
It really is that simple!
Probate Loans with Provira
A Probate Loan can be a fast, easy way to access your inheritance funds. Whether you’re an executor looking to pay off estate expenses, or a beneficiary waiting for your inheritance.
Most importantly, however, it is not secured against your home. The loan is secured only against the estate, meaning your property and your savings are completely safe.
And, unlike regular loans, Probate Loans come with no monthly repayments, no credit checks and no set loan terms, giving you peace of mind when you need it most.
Need help accessing estate funds?
Provira helps families and executors across the UK access inheritance funds quickly, without risk to their home or finances.
Apply for a Probate Loan today to speak to our friendly team.
