Probate is the entire legal process of administering a deceased individual’s estate. This involves organising their money, assets and possessions and distributing them as inheritance,
after paying any taxes and debts.
If the deceased has left a Will, it will name someone that they’ve chosen to administer their estate. This person is known as the Executor of the Will. Probate ends once all taxes and debts have been paid and all inheritances have been distributed.
Estate Expense & IHT Funding
During the administration period of an estate (i.e. the period after death, but before the estate assets have been distributed to beneficiaries) there are certain administration, testamentary and tax costs to be paid. Estate Administration Fees (excluding Inheritance Tax (‘IHT’)) can cost around 5% of the estate value.
If the estate is unable to pay these, it may delay the process of planning a funeral, grant of probate, selling assets and ultimately paying out the inheritance to the beneficiaries.
Level’s estate expense & IHT funding allows executors to unlock a proportion of the estate to pay estate liabilities such as:
Inheritance Tax
Funeral costs
Property repairs, maintenance & associated sales costs
Property clearance costs
Professional fees such as probate, valuers and surveyors
Insurance
And other recognised testamentary expenses
Inheritance Release
The administration period of an estate and the subsequent release of the inheritance usually takes around 12 months. During this time individuals may have pressing financial needs. A loan with Level may allow up to 60% of an individual’s inheritance to be released early, which can be used for whatever they require, such as:
Clearing tax liabilities or other debts
Putting down a deposit on a new property
Financing home improvements
Purchasing a new vehicle
Education, medical, veterinary costs
Paying for a holiday
Level is one potential funding option and you should explore other options to ensure you choose the most suitable solution for you.
Please do contact us to speak to one of the team.
