Yes, it is possible to release cash during probate, using a specialist financial product available from Provira known as an Inheritance Advance or an Estate Advance.

Whilst the average probate period might take 9-12 months, there might be a need to access your Inheritance early – perhaps to cover any pressing legal expenses, pay Inheritance Tax (IHT) or to make property improvements to the Estate prior to sale.

Provira offers up to 50% of your future inheritance in the form of an advance, also known as a probate loan, and this can be successfully approved and funded in a matter of days. This is available in the following ways:

Inheritance Advance – aimed at beneficiaries of Estates, it provides immediate access to up to 50% of your future inheritance. The funds can be used for any purpose.

Estate Advance – aimed at executors of estates, it provides immediate access to up to 50% of the net assets in the estate. The funds can be used to pay Inheritance Tax, any other estate liability or to make repairs/renovations to a property in the estate prior to sale.

Am I eligible to release cash during Probate?

To confirm your eligibility, we will require:

• 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
• The application to be made by a beneficiary (Inheritance Advance) or executor (Estate Advance) 

The application criteria for both types of loan and advances is assessed primarily on the value of the net assets in the estate and not your personal circumstances. Neither your credit score nor your income are considered in the decision-making process.

Based on the information provided in the documents we require and the net value of the estate, we are able to determine how much you can borrow. If you decide to go ahead, your funds can typically be released within a few days.

Why might I need to access money during Probate?

In the UK, the typical time that it takes for probate to be granted is around 9-12 months and this can be stretched further if there are further complications, such as disputes amongst partners, divorced parties or beneficiaries – and if there are several assets, including those based abroad.

In these events, there may be a desire for beneficiaries to access immediate funds before Probate is granted. Using the Estate Advance, beneficiaries are able to fund any pressing bills or estate repairs  while using an Inheritance Advance, beneficiaries are allowed to use the funds as they see fit.

A common reason for needing to access cash during Probate is because Inheritance tax (IHT) is due within 6 months of the individual passing away, as per HMRC guidelines. Failing to pay this tax on time will incur interest of 7% to 8.5%.

Beneficiaries of the estate are liable to pay Inheritance Tax before they have received their Inheritance or the Estate has been sold and may have to pay this out of their own pocket

With our Inheritance Advance and Estate Advance products, beneficiaries are able to access their inheritance during the Probate process. 

What can the cash I access during Probate be used for?

Pay Inheritance tax (IHT) – Using an Estate Advance, you can pay your Inheritance Tax liabilities, in part or in full. This will be due exactly 6 months after the individual has died and you may not have the cash available without an advance.

Make repairs to the Estate – If you are planning on reselling or living in the house of the deceased, you may need to make important repairs and restorations to make it more livable for your family or make it more attractive and valuable before being sold on the open market. The funds could be used towards upgrading kitchens, bathrooms, floorings, paying decorators, extensions and more.

Pay legal expenses – When using an Estate Advance, the funds can be used to pay any pressing legal bills from solicitors, funeral expenses, lawyers, accountants and more.

Any other reason – When you obtain your inheritance during Probate through our Inheritance Advance product, you can use it for any other reason. This might include home improvements, debt consolidation, buying a new car, school fees, holidays, putting it towards a  business venture or any other expense of your choice.

FAQs

How is the advance repaid?

When releasing money during Probate, the loans are automatically repaid when Probate is granted, when the assets are sold or liquidated. 

Do all the Beneficiaries have to release cash during Probate together?

No, if there are multiple beneficiaries, there is no obligation for all of them to release cash during Probate together. It can just be one or two individuals if they would like.

Am I required to pay monthly interest or use my home as security?

Whilst monthly interest is accrued, you do not need to make monthly repayments, because the loans are repaid in full when Probate is granted.

You do not use your own home as security – the eligibility for an Inheritance Advance or Estate Advance is based on the net value of the estate, not your own property.

What if the Inheritance is less than expected?

If it transpires that the amount of Inheritance you are owed is less than originally expected, you are not penalised in any way and you are not required to cover any of the shortfall as long as the terms of the loan have not been breached. 

What are the alternatives to Probate loans?

There are alternatives if you need to release cash during Probate. This might include a personal loan from your bank or high street lender and eligibility will be based on your personal circumstances including your income, employment, residential status and credit score – and not based on the net value of the estate.

A further alternative is borrowing against your home or property, known as a second mortgage or secured loan.

This will involve using your property as security and your property will be at risk if you cannot keep up with repayments.