Probate Explained

Probate can be a long and confusing process. In Probate Explained, we talk you through how it works and how Level can help.

Written by Josh White Head of Growth

What is Probate and How Does it Work?

Probate is the legal and financial process of dealing with the property, money and possessions of a person who has died The probate procedure can be long and complicated. However, Level offers a range of dedicated products to help you access your inheritance.

The Probate Process Explained

Step 1: Applying for a Grant of Probate

The Executor of a Will (or Personal Representative when there is no Will) applies to the Courts for a Grant of Probate. This gives them legal control over the deceased person’s assets so that they can start the process of disposing of them, and therefore settle any liabilities of the Estate, before distributing the residual proceeds to the Beneficiaries.

Step 2: Paying Inheritance Tax

However, in order to get the Grant of Probate, any Inheritance Tax (IHT) has to be paid to HMRC before it can be issued by the Courts. This means that the Executor/Personal Representative has to find the money to pay the IHT before they have access to the assets held in the Estate.

How Long Does Probate Take?

The final phase of the probate process involves disposing of the assets and the distribution of the estate proceeds to the Beneficiaries of the Will. Given how complicated the process is, it is usually 9-12 months before any of the Beneficiaries can make a claim on the Estate after probate and receive any money from the Estate.

Need Help with Probate and Inheritance Tax?

Probate is the process of administering a deceased person’s estate. It usually takes several months from the appointment of the Executor of the Will to receiving the Grant of Probate, and even longer to the final distribution of the assets to the beneficiaries.

Level recognises that the Probate and Inheritance Tax processes, and the delay before Beneficiaries receive any money, can have a significant impact on the Executor/Personal Representative/Beneficiaries.

We have therefore designed two unique products to help you with the different steps of the probate process:

Executor Loan: for paying IHT to HMRC so the Grant of Probate is not held up

Inheritance Advance: to allow Beneficiaries to access a proportion of their inheritance earlier

Do you want to learn more about Inheritance Advance, IHT Loan and Level? Visit our FAQs to find out more, or give us a call on 020 7205 2870 to find out how we can help you access your inheritance sooner.

Why Choose Level’s Probate Products

You may have heard of a Probate Loan (sometimes called Probate Finance, Inheritance Loan, Probate Funding or Probate Bridging Loan) but they are generally a re-badged standard Bridging Loan.

These Probate Finance products normally require you to wait until probate is granted before you can take your Inheritance Loan out.

Level’s Inheritance Advance product has taken the best features from other Probate Finance products on the market to design something available to a wider audience of people. More importantly, you don’t need to wait for probate to take one out.

The table below shows how our Inheritance Advance product compares with other products:

FAQs

Here are our range of frequently asked questions. If the question you have isn’t answered here please contact us and we’ll be happy to help.

About Level and probate lending solutions

Who are Level?
What is Probate Lending?
What is an Inheritance Advance?
What is an Executor Loan?
Why take out an Inheritance Advance when I can wait for my inheritance?
If there is more than one executor, do I need permission from all of them to get an Executor Loan?
I am the executor but not a beneficiary, can I still take out an Executor Loan?
Do I need the permission of the beneficiaries to get an Executor Loan to pay IHT?
As the executor I am liable for paying the IHT – do I have any liability with an Executor Loan?
Do I have to pay the IHT to HMRC?
Does it matter where I live?
Do I have to pass a credit check?
Do I need to prove I have a regular income?
Do I need to worry about paying the funds back?
If anything unexpected happens, am I liable?
Am I too old to use your products?
Does there need to be a Will?
Is there a minimum and maximum amount you can provide?
How quickly would I be able to receive my money?
Do I have to have a professional administering the estate?
Who pays the money back to you, me or the firm managing the estate?
What if the estate takes a long time to sort out?
How do I make an application?
How do I make a complaint?

Who are Level?

We’re a lender focused on designing innovative financial products for people who are inheriting money or going through legal proceedings with and expected settlement. We have been top ranked as a litigation funder by Chambers & Partners for the last 5 years. We are authorised by the Financial Conduct Authority.

What is Probate Lending?

Probate Lending solutions help beneficiaries or executors/personal representatives to access tax free cash from the estate of a deceased individual before the estate arrives at distribution.

What is an Inheritance Advance?

An Inheritance Advance means beneficiaries don’t have to wait 12 months for their inheritance.

What is an Estate Expense & IHT Loan?

An Estate Expense & IHT Loan means executors can fund any expenses they incur including funeral costs, inheritance tax, administration fees or property maintenance costs.

Why take out an Inheritance Advance when I can wait for my inheritance?

If you are happy to wait 9-12 months for your inheritance, then you don’t need an Inheritance Advance. However, many beneficiaries use an Inheritance Advance to pay debts, make home improvements, pay for education/social care costs, move house, go on holiday or just increase their disposable income.

If there is more than one executor, do I need permission from all of them to get an Executor Loan?

No, any one executor, or Personal Representative if there isn’t a will, is able to access an Executor Loan.

I am the executor but not a beneficiary, can I still take out an Executor Loan?

Yes, as the funds are repaid by the estate, it does not matter who the beneficiaries are.

Do I need the permission of the beneficiaries to get an Executor Loan to pay IHT?

No, payment of the IHT is the responsibility of the executor, or Personal Representative; however, the beneficiaries cannot get any of their inheritance until the IHT is paid.

As the executor I am liable for paying the IHT – do I have any liability with an Executor Loan?

No, funds to pay the IHT become a Testamentary Expense, which means that it becomes a liability of the estate, not a personal liability for you. There are no monthly repayments, no requirement to do a credit check on you or take a charge over any property.

Do I have to pay the IHT to HMRC?

No, we will settle the IHT liability with HMRC directly. Here are some general frequently asked questions about our products

Does it matter where I live?

We normally only lend where the Estate is located in England/Wales however we can lend to Executors who are resident in any part of the UK and also have solutions when they are resident outside of the UK. We are always happy to help potential customers with any challenges they may have so please do get in touch and talk it through with one of our customer advisors.

Do I have to pass a credit check?

No, your credit history isn’t relevant because the funds are repaid from the estate. We will only check for (undischarged) bankruptcy.

Do I need to prove I have a regular income?

No, you do not need a regular income as there are no monthly repayments.

Do I need to worry about paying the funds back?

No, you don’t have to make any repayments. The funds are repaid directly from the estate.

If anything unexpected happens, am I liable?

No, you are not personally liable for anything. If anything unexpected happens such as a long lost beneficiary or another Will, we take that risk.

Am I too old to use your products?

No, age is no barrier to accessing our products. The funds are repaid from the estate so there is no age limit.

Does there need to be a Will?

No, when a person dies without leaving a valid Will, the rules of intestacy apply which set out how much each beneficiary gets. We follow this guidance.

Is there a minimum and maximum amount you can provide?

We can offer from £15,000, up to a maximum of 60% of your inheritance or the net assets that can be valued and will be sold.

How quickly would I be able to receive my money?

For Inheritance Advance, any loans less than £60,260 require us, by Law, to allow a 14-day cooling off period in case customers want to change their mind. For all other loans, we hope to release the funds within 48 hours of the loan being approved. This also relies on the information required to underwrite the lending being provided swiftly by the solicitor.

Do I have to have a professional administering the estate?

Yes, we do require that there is a professional firm managing the estate. We can help you find a law firm specialising in estate administration and management. Please get in touch with Level to find out more.

Who pays the money back to you, me or the firm managing the estate?

It is the firm managing the estate; they will pay us back the Advance/Loan (plus rolled up fees/interest) before any other money is paid out.

What if the estate takes a long time to sort out?

Once we’ve given you the Inheritance Advance or the IHT Loan, we take the risk that the estate takes longer to liquidate or if the assets sell for less than expected. The interest rolls up on the outstanding amount (only for the first 30 months) but the balance to be repaid out of the estate will never be more than the inheritance you will receive.

How do I make an application?

Give us a call on 020 7205 2870 and we will talk you through the process or email us at enquiries@thelevelgroup.co.uk. You can also fill in our application form online.