Probate finance, just like the process a person undergoes when a loved one passes away, can be exhausting, uncertain, and plagued with difficulties. The probate process can take much longer than expected, and finances still must be settled during this time.
This is where probate bridging loans can offer some much needed relief.
Using a bridging loan instead of a probate loan can be a much more easily managed loan structure for matters of probate since this can resolve the average person anxieties surrounding what is a difficult time.
Let’s take a further look at probate finance in general, and how we at Bridging Options can help.
What are probate issues?
Probate is a complex affair, and this is made all the more evident if the deceased did not name an executor in their will, or if they passed away without leaving a will at all.
Typically tens of millions of people leave a will and name an executor. This means that those dealing with the property, money and possessions of the deceased will need to apply for what is known as a grant of probate to handle all financial pressures that can lead to finance solutions once the deceased person’s will has been reconciled.
If the deceased did not leave a will, you can apply to become an executor granted you are the deceased’s spouse or next of kin.
Solicitors can help you in this matter, and will typically first want to appraise any property left behind, but depending on the value, you may also have to pay inheritance tax.
Furthermore, the process takes time, and financial hurdles can present themselves during this process.
To avoid these circumstances, and to help avoid the need to pay legal fees that can be quite costly, bridging finance solutions can help bridge the gap, and even help you to prevent you being forced to sell assets.
When are bridging loans used for probate issues?
Apart from inheritance tax issues, bridging finance solutions can help with cash flow problems and even help to resolve any inherited debt which may or may not arise with the dealing of the will.
A standard bridging loan can be secured through probate bridging lenders for all manner of probate issues.
For example, when a person dies and their estate has a monetary value that can satisfy any other outstanding loans, these debts are given priority before any beneficiary can receive remaining funds.
Sometimes, this can lead to there being no remaining funds (depending on the amounts of debt), and many surviving spouses or next of kin may even be forced to sell assets to satisfy a probate loan.
What bridging loans can do in this instance is to provide a loan amount to satisfy probate loans or any other costs to resolve the average person being faced with this debt.
Bridging loans can be used for the following regarding probate:
- Most legal purposes
- To pay inheritance tax before interest payments begin
- To pay legal fees and inheritance tax simultaneously
A bridging loan is short term finance solution and there are a range of assets that can be used as collateral. At Bridging Options we work fast to secure bridging finance solutions for our clients.
How does probate bridging work?
The most common reason to take out a probate bridging loan is to secure funds while waiting for the legalities of probate to take effect.
Additionally, a probate bridging loan can be used to pay off any debts that arise or to help those remaining move forward and past the deceased’s financial affairs.
There are also instances where the departed’s finances were just not in tip-top shape, and in these scenarios, bridging finance can be used to alleviate the stress of those remaining once the restructuring is initiated and the legal affairs are sorted out.
What options are there?
All you have to do is consult with lenders and then consider the best bridging finance offers available and scenario that is right for you.
The process is very similar to instances of chain break finance to buy a home. The bridging loan is short term and usually only lasts for a year.
It can be beneficial to perhaps steer towards a reasonable amount that can be paid back after 12 months, since bridging finance can potentially cap out around £250,000.
FAQs
Why choose Bridging Options 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.