Probate Loans

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    Struggling with probate delays? Get the cash you need now with a fast, secure probate loan with the help of Bridging Options.

    What is probate?

    Probate is the legal process of settling a deceased person’s estate. It involves identifying and valuing all assets (like property or money), paying off any debts, and distributing the remaining inheritance to beneficiaries as outlined in the will (if there is one).

    This process can take months or even a year to complete, and associated costs can include court fees and legal fees.

    What does a typical probate process look like?

    1) Register the death and locate the will (if there is one)

    2) Value the estate: The total value of the deceased’s assets and liabilities, including property, bank accounts, investments, debts, and other possessions, is assessed.

    3) Apply for probate:

    • If there is a will: The executor applies for a grant of probate.
    • If there is no will: An administrator (usually a close relative) applies for a grant of letters of administration.

    4) Pay inheritance tax: You may need to pay some or all of the inheritance tax before the grant of probate is issued.

    5) Grant of probate issued: Once the application is approved, the probate registry issues the grant or letters of administration, giving the executor the legal authority to manage the estate.

    6) Collect the estate’s assets: Collect money from banks, sell property, and gather other assets.

    7) Pay debts and expenses: Settle any outstanding debts, taxes, and expenses from the estate.

    8) Distribute the estate: Distribute the remaining assets according to the will’s instructions or, if there is no will, according to the rules of intestacy.

    9) Final accounts: Provide beneficiaries with a final account detailing all the income, expenses, and distributions made from the estate.

    Throughout this process, the executor or administrator must keep accurate records, communicate with beneficiaries, and ensure all legal and financial obligations are met.

    The probate process typically takes around 12 months. That is why many beneficiaries choose to access their inheritance sooner by taking out a probate loan.

    Interested in how probate loans work? Contact one of our network of probate loan experts today.

    What issues can probate cause?

    Probate can be a complex and time-consuming hurdle for beneficiaries, especially if the deceased did not leave a will.

    Delays are common, which can turn an already stressful situation into a financial headache for inheritors. This is especially true if beneficiaries are counting on the inheritance to cover immediate expenses, like funeral costs and legal fees.

    Delays can also push the settlement past the inheritance tax deadline, triggering interest charges and leading to a bigger overall inheritance tax bill. This can force the beneficiaries to use their personal finances or take on debts against their own assets.

    To avoid financial upheaval, a probate loan (also known as an inheritance advance loan, executor’s loan, or estate loan) can help “bridge the gap” until probate is settled.

    Can you borrow against probate?

    The good news is that beneficiaries, personal representatives and executors can borrow against the value of the deceased’s estate assets with probate loans.

    Bridging Options has access to a network of inheritance advance loan experts who can help you secure the funds you need fast.

    Contact us today for a free consultation to get started.

    How do probate loans work?

    Probate bridging loans are a form of short-term, secured loan. They are used to access money from an inheritance before probate is finalised, which can take around a year. As probate loans are secured by the assets in the estate, you don’t need a good credit score to qualify.

    Funds can be granted quickly, and there are no monthly repayments. Interest accumulates throughout the probate process, and once the probate is settled, the entire loan amount plus interest is repaid in one lump sum from the estate’s funds.

    Crucially, for an inheritance advance, the borrower does not have personal liability for the loan; the lending company assumes the risk. If the estate is overvalued, the lender can recoup as much of the outstanding loan balance as possible from selling estate assets before writing off the remainder of the loan.

    Why consider a probate loan?

    Probate loans can be a lifeline during probate. They provide access to funds quickly while the estate’s legal matters are settled. This can be crucial for a beneficiary to meet immediate needs like covering debts, cash flow issues or ongoing expenses.

    Probate loans are also commonly used to avoid incurring interest on inheritance tax. By paying them upfront with a probate loan, you avoid interest charges and ensure they don’t eat into the final inheritance amount.

    This kind of bridging loan can also help in instances where the departed’s finances are not in tip-top shape, and debts are left behind. It can alleviate stress and prevent financial strain for those left behind.

    At Bridging Options, we have access to a network of loan experts who work fast to secure bridging finance solutions for our clients. Contact us to find out more and access your inheritance sooner.

    Probate loans – key benefits

    Taking out a probate loan (sometimes known as an inheritance loan or inheritance advance loan) has several benefits.

    Access cash quickly: Probate can take months or even a year to complete, and a probate loan essentially allows you to access your inheritance early.

    Cover immediate costs: Executors or personal representatives can use a probate loan to release funds to pay bills such as inheritance tax or funeral expenses without dipping into their personal finances.

    No credit check: Unlike traditional loans, probate loans don’t rely on credit checks for approval. The loan is secured by the expected inheritance based on market value and expected depreciation.

    Potentially competitive interest rate: Probate loan interest rates can be competitive compared to other options, like credit cards.

    No personal liability: With a probate loan, the borrower is not liable to repay the loan balance if the estate assets are not enough to cover the debt. Instead, the lender takes the risk.

    No monthly repayments: Probate loans don’t generally require monthly payments. Instead, the entire loan amount, including principal and accrued interest, is repaid directly in one lump sum with the funds of the estate after it’s settled. As well as there being no regular payments, lenders typically don’t charge an early repayment fee.

    Minimise inheritance tax obligations: Many people choose probate loans to avoid missing the six-month deadline for interest-free inheritance tax payments.

    Why choose Bridging Options for probate loans?

    Probate can be a lengthy process, leaving beneficiaries waiting for their inheritance. This delay can create financial strain, especially if you are relying on funds to pay costs associated with the deceased’s estate.

    At Bridging Options, we can help you find a solution in the form of probate loans.

    • Fast access to funds: A probate loan (i.e., inheritance advance loan) allows you to access a portion of your inheritance upfront. This can help cover immediate expenses or bridge the gap until probate is finalised.
    • Streamlined process: Our network of experienced professionals can guide you through the probate loan process efficiently, minimise paperwork and ensure a fast turnaround time.
    • Wide choice of solutions: Our experts have access to a wide selection of probate loan products from various lenders and can find a solution that works for you.

    Contact Bridging Options today

    Don’t let probate delays disrupt your financial stability. We can help you navigate the process and access your inheritance quickly. Schedule a free consultation to discuss your options and receive personalised guidance from our network of bridging loan brokers.

    Frequently Asked Questions on Probate Bridging

    Can you get a loan while waiting for probate?

    Waiting for probate to settle can be a stressful time, especially if you are faced with fees and costs connected to the deceased’s estate. The good news is that you can get a bridge loan while waiting for probate to settle to avoid using your own money.

    Do you have to pay legal fees for a probate bridging loan?

    Legal fees must be paid to secure a probate bridging loan. This is because a bridge loan is listed as a charge against a property or other valuable asset that has been used as security.

    So, when considering a probate bridging loan, it’s important to factor in the potential legal fees associated with securing the loan in addition to the loan’s interest rate to get a clearer picture of the overall cost.

    Are probate loans the same as inheritance loans?

    Yes, probate loans, executor loans, and inheritance loans are essentially the same thing. All these terms refer to a financial product that provides beneficiaries or executors with access to funds from an estate before the probate process is complete, but they may come with different loan terms.

    That’s why it’s important to work with an expert like Bridging Options to understand your options.

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    Why choose us for your Probate bridging loan?

    At Bridging Options, we understand on a human level just how stressful and frustrating it can be when certain life events such as the death of a loved one occur. Life keeps moving forward, and financials have to be satisfied and reconciled, and this is where we can help.

    Securing a bridge loan can be a beneficial opportunity while you wait for the particulars of probate to complete.

    We are on call every step of the way, from the initial contact to the application process, and beyond as we make it our goal to secure your bridge loan.

    We want to help

    We only want the best for our clients, so we explain things in a way that is easy to digest and offer our support at every turn.

    We are the experts

    Our deep industry knowledge, and wide database of brokers and lenders allow us to provide unparalleled guidance and insights.

    We are honest and transparent

    Our commitment to integrity means clients can trust that our advice and recommendations are always in their best interest.