Probate Loans: Easing the Strain at a Difficult Time
If you’re not familiar with the Probate process, you may not be aware of the difficulties that can arise when trying to sort out the estate of a loved one, particularly when it comes to the financial side of things.
Many people expect to be able to access their inheritance or get all the financial issues settled in a relatively short time, but that often isn’t the case. Even with a simple estate to manage, it can take six to nine months for Probate to complete. A larger estate with more complex assets could take significantly longer. Consequently, beneficiaries and Executors often find themselves requiring access to emergency funds before Probate as they don’t have sufficient money to cover the immediate costs. The solution for many is to take out a Probate loan.
What is Probate?
Probate is something you need to apply for in order to have the legal right to deal with someone’s estate. This is usually done by the Executor of a Will or the next of kin of the deceased. This means you can legally access the accounts and documents you will need to administer an estate, e.g. the person’s bank accounts, investments, pensions etc.
How does a Probate loan work?
A Probate loan is a very quick way to get the money you need to move forward and is secured against the estate or inheritance in question. If you’re a beneficiary, you can borrow against your future inheritance, if you’re an Executor you can borrow against the estate. The size of loan you may be entitled to depends on the size of the estate or inheritance.
Due to the way these loans are secured, you usually don’t pay the loan back in monthly instalments but simply pay it off in full when you finally get access to the assets. It also means that loan applicants generally won’t need to have a credit check which makes the whole process faster and simpler.
Why might I need a Probate loan?
There can be a lot of costs involved in dealing with someone’s estate and they often need to be settled sooner rather than later. As experienced Probate specialists, we have come across a wide range of reasons why our customers need access to interim funds after a loved one has died. A Probate loan can be very useful when:
- The Inheritance Tax due must be settled withing six months of the death but the amount is a significant sum of money that the person dealing with the estate simply doesn’t have access to yet.
- A property has been passed down, but the mortgage has to be paid off and insurance or maintenance costs need to be covered.
- A property, vehicle or other asset needs to be improved or refurbished before it can maximise its potential and sell at its full market value.
- The person who passed has accrued debts that need to be settled. With a Probate loan, these debts can be consolidated and paid off promptly without extra interest or late payment penalties adding up.
- The family can’t pull enough money together to cover the cost of the funeral.
- There are legal costs to be settled.
- Beneficiaries need access to their inheritance money early.
There are many other reasons why beneficiaries or Executors may find themselves in a financial bind over an estate or inheritance, but having the option of taking out a Probate loan offers some peace of mind. It also helps avoid unnecessary losses in situations where assets have to be quickly sold off at well below their market value to cover estate costs.
How can Laurelo help me?
At Laurelo, we understand how overwhelming dealing with after-death administration can be, particularly at a time when you’re trying to come to terms with the loss of a loved one. It’s our mission to make the whole process as fast, straightforward and stress-free as possible.
As well as being able to advise you on taking out a Probate or funeral loan through our FCA regulated partners Provira and Funeral Safe, we also offer a full range of Probate services. If you need any assistance with Probate applications, estate administration, professional executorship or secure will storage, we’re here to help.
This article is intended to provide information only and does not constitute legal advice. We do not accept any responsibility for any omission or loss as a result of this article.
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Patrick and Phillipa Vickery (Executor)
"When you lose a parent it’s an emotionally challenging time. Finding people to genuinely help with the mountain of subsequent issues is not easy. We dealt with Laurelo who took care of our Probate. Communicative and easy to talk to, Laurelo took away a bunch of stress and handled a complex estate excellently. I have no doubt that his experience has saved my family a significant tax burden."
C Hardman (Executor)
"Well informed, helpful and efficient throughout the whole probate journey. I was particularly impressed by the speed of response when I had questions"
V Garner (Executor)
"Thank you for dealing with the probate so efficiently. I would not hesitate to recommend your services in the future."
J Jackson (Executor)
"It has been my absolute pleasure to have met Michael and for him to act on my behalf, a wonderful, professional, caring person whose services I would recommend to anyone."
Peter Nash/Paula Cranmer (Executors)
"I would recommend Laurelo to anyone who needs good and sensible advice about the probate process at a very reasonable price."
A Wilson (Executor)
"I wouldn't hesitate in recommending Laurelo in what, at the outset felt like a daunting task, but in reality once explained to us and the burden of completing the forms taken away and completed by a professional the process was seamless."
Lorri Turner Senior Manager (Herongate Wood)
“I have always found Michael at Laurelo to be engaging, honest and supportive of the customers needs. The offer of a home visit to see clients within their own familiar surroundings further supports this. I have no difficulty in recommending their services."
G Perrett Will Protect Ltd & Executor
“Michael's professionalism and knowledge of every aspect of probate is only matched by his sensitivity and patience. He instinctively knows what to say and when to say it and I am so grateful to him for helping me navigate the most difficult period of my life so far safe in the knowledge that I could simply "park" this part of the process and leave it with him to "sort out"."
K Whittle (Executor)
“They provided a professional and emphatic approach and took all the stress away from dealing with probate. Filing the forms very promptly and the whole process was dealt with in just over a month. I would highly recommend and I again thank them for their help."
Mr. A Browne (Executor)
“The pricing point is good and in line with a few others, we found however for the service we received I do not think we could have put a price on it.
We would wholeheartedly recommend Michael and his team."
John F Smith (Executor)
“I was most satisfied with the service he provided, and his gentle and considerate manner was most comforting at a difficult time in my life."
Robert Evans (Executor)
“I just wanted to express my sincere thanks to Michael for the way in which he managed the probate arrangements at what was a very difficult time for myself and the family. Whilst always professional and efficient he was very sensitive and supportive - explaining things clearly and making the whole process (which was totally new to us) that much more straightforward. It took a load off our minds and he progressed things really quickly Thank you"