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.

To talk to an expert, get in touch with our friendly Laurelo team today by calling 0203 058 2329, email info@laurelo.co.uk or drop us a line via our online contact form.

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.