We can fund inheritance tax and other estate costs.

What is an Estate Advance?

If you’re managing the affairs of somebody who has died, we can advance money to help you cover the costs.

As the executor or personal representative responsible for managing an estate, you may find yourself facing unexpected and unavoidable costs, which can sometimes be significant.

These may include:

• Inheritance tax
• Property maintenance, insurance and clearance costs
• The costs of selling property
• Legal and administrative fees
• Funeral costs

Where the estate has sufficient cash reserves, you may be able to cover these costs using this money. However, many estates mainly include property, investments and other non-cash assets, meaning that raising the money to pay bills on behalf of the estate can be difficult.

This is where we come in.

Our Estate Advance lets you borrow on behalf of the estate to cover these costs, letting you focus on the important job of managing the estate through to distribution. The money we provide, plus interest, is repaid to us directly from the estate once funds become available.

Alternatively, if you’re a beneficiary looking to access your inheritance sooner, you can read about our Inheritance Advance here.

What does the Inheritance Tax Advance cost?

The Inheritance Tax Advance is fast, flexible and the interest rate is fixed at the start.

The costs of using an Inheritance Tax Advance from Advanced Inheritance are as follows:

• An arrangement fee of 1.95% of the amount advanced (subject to a minimum fee of £595 and a maximum fee of £2,995) is payable at the outset, although you can choose to add this to the loan if you prefer.
• Interest is added to the amount advanced at a rate of 1.65% per month.

There is no need to make any repayments until the estate is due to be distributed, although because the Advance is flexible and has no early repayment charges, you can make payments at any time. This can help to reduce the amount of interest charged and, therefore, the overall cost of the Advance.

Furthermore, the Inheritance Tax Advance can be used to pay either the full IHT liability or, if you agree a payment plan with HMRC (such as paying the tax over 10 years), you can use the Advance to cover just those payments that are due at the outset.

You can find out more about Inheritance Tax by reading our quick guide.

Representative Example

• The following example is based on an Inheritance Tax Advance of £38,000, with an arrangement fee of 1.95% added to the loan at the outset.

  Interest accrues at a fixed rate of 19.8% per year. This is equivalent to a representative APR of 24.3% APR.

  This example is based on a period of 12 months, after which the total amount payable would be £47,221, but the actual duration and total amount payable will depend on the length of time it takes for the advance plus interest to be repaid.

• The following example is based on an Estate Advance of £38,000, with an arrangement fee of 1.95% added to the loan at the outset.

  Interest accrues at a fixed rate of 22.8% per year. This is equivalent to a representative APR of 28.0% APR.

  This example is based on a period of 12 months, after which the total amount payable would be £48,659, but the actual duration and total amount payable will depend on the length of time it takes for the advance plus interest to be repaid.