IHT Loan Inheritance Tax Loan
How does an IHT loan work?
When you apply for an IHT loan, we will arrange for a lender to pay HMRC the inheritance tax (IHT) owed. Once the IHT has been paid, an application can be made for a Grant of Probate. Following the Probate process, the assets of the estate will be made accessible for disposal, allowing the IHT loan to be paid back from these funds. As the estate will refund the money for the IHT bridging loan, there will be no monthly repayments and no financial risk to you.
IHT Loan key benefits
• No risk
• No credit checks
• No monthly repayments
• No requirement for a Will
• No personal liability
• No charge over the property
What can an inheritance tax loan be used for?
If you need help settling an IHT bill, it can be expensive and time-consuming to arrange the funding. Until you have settled the IHT, you can’t obtain the Grant of Probate and the estate cannot progress through to distribution. This creates “locked” estates which cannot move forward until the IHT has been settled.
An Inheritance Tax Loan can be used to ensure your estate does not become locked by enabling you to settle the IHT bill quickly and easily. This ensures that you avoid any delay or penalty charges from the HMRC.
Who is an IHT Loan aimed at?
An IHT loan can provide financial relief to executors (or personal representatives where there is no Will) who are facing a hefty inheritance tax bill. Taking out an executor’s loan to pay IHT will not only benefit you as the executor/personal representative, but it will also allow any beneficiaries of the estate to receive their inheritance in a timely manner.
An IHT loan is available to anyone who needs to pay UK inheritance tax. Unlike a traditional bank loan, there are no credit checks and no monthly repayments, so your income and affordability do not need to be assessed. This means you can apply for a bridging loan to pay inheritance tax, regardless of whether you own a property or have a good credit rating.
How does Inheritance Advance work?
When you borrow against your inheritance, you can get an advance of up to 60% of the money that is due to come to you from the estate. There is no need for you to make any repayments, as these will be made directly from the estate, including the rolled-up fees and interest.
What can inheritance funding be used for?
If you’re waiting for an inheritance to come through, it can sometimes be a long, drawn-out process. On average it takes a year to gain access, and in some situations that may be too long to wait – especially if you need to deal with pressing financial concerns. An advance gives you the option to receive some of your inheritance early, and the funds can be used to help with all manner of things, such as:
• Paying off your mortgage
• Clearing your debts
• Financing home improvement projects
• Going on holiday
• Purchasing a new car
• Putting down a deposit on a new home
• Covering medical, veterinary or education costs
Inheritance Advance key benefits
• No risk
• No credit checks
• No monthly repayments
• No requirement for a Will
• No personal liability
• No charge over the property
• Available pre Grant of Probate
Inheritance tax loans, also known as IHT loans or executor loans, provide essential financial help to cover inheritance tax liabilities. These loans are created to bridge the gap when paying IHT before estate assets are liquidated. Executors can use inheritance loans, probate loans in London, or bridging loans to pay inheritance tax, ensuring timely tax payment and avoiding penalties. Inheritance lenders offer flexible options, including borrowing against inheritance or estate investments. With competitive inheritance loan rates and different loan products available, executors can efficiently manage tax obligations, enabling a smooth probate approach and estate distribution.