We can fund inheritance tax and other estate costs.
Borrowing on behalf of the estate is fast, simple and effective.
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.
How does it work?
A step-by-step guide
- Get a free, no-obligation quote.
- You or your professional administrator supply us with details of the estate assets and liabilities.
- We review the estate’s eligibility for an advance.
- You complete the application forms.
- We pay the estate expenses directly to the administrator or, for Inheritance Tax, to HMRC.
What does it cost?
The Estate Advance is fast, flexible and the interest rate is fixed at the start.
The costs of using an Estate Advance from Advanced Inheritance are as follows:
- An arrangement fee of 1.8% of the amount advanced subject to a maximum charge of £2,700 (this can be paid up front or added to the loan).
- An interest rate 1.8% 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 be beneficial in reducing the amount of interest charged and, therefore, the overall cost of the advance.
Who can benefit?
You can use an Estate Advance for anything that is classified as a ‘testamentary expense’.
A testamentary expense is, in simple terms, any cost that is directly associated with managing and distributing the estate of somebody who has died.
If you’re an Executor or Personal Representative managing an estate that does not have sufficient cash savings with which to cover these expenses, we may be able to help you with an Estate Advance.
In order to assess your eligibility, we will need some details on the assets and liabilities within the estate, after which we can provide you with a full, written quote.
Find out more about being an Executor or Personal Representative on our guide to managing an estate.
Representative Example
The following example is based on an Estate Advance of £28,000, with an arrangement fee of 1.8% added to the loan at the outset.
Interest accrues at a fixed rate of 21.6% per year. This is equivalent to a representative APR of 26.3% APR.
This example is based on a period of 12 months, after which the total amount payable would be £35,374, 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.
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Whether you’re an existing customer or you’re interested in one of our services, we’ll always be happy to help.
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