Suffolk-based financial services business Provira is helping families and executors overcome one of the most challenging financial hurdles following a bereavement: finding the funds to pay Inheritance Tax while an estate is still tied up in the probate process.
Provira specialises in probate finance, providing Estate Advances and Inheritance Advances that give executors and beneficiaries access to funds before an estate has been fully administered.
For many families, the challenge is one of timing. Inheritance Tax generally needs to be paid by the end of the sixth month following a person’s death, while probate can take considerably longer to complete. Where an estate’s wealth is largely held in property, investments or other assets, executors can find themselves facing a significant tax liability without enough readily available cash to meet it.
“An estate can be valuable on paper but still have very little accessible cash when important payments become due,” said Steve Gauke, Managing Director of Provira.
“For families already dealing with the loss of a loved one, having to find a substantial sum to pay Inheritance Tax can create additional financial and emotional pressure. We provide a way to bridge that gap, helping executors deal with immediate costs while the wider probate process continues.”
Provira’s Estate Advance is designed for executors who need to access funds to cover costs associated with administering an estate. This can include Inheritance Tax, legal fees, property repairs and other estate liabilities.
Eligible executors can access up to 50% of an estate’s net value, with funds potentially available within days. Provira can also arrange for Inheritance Tax payments to be made directly to HM Revenue & Customs (HMRC) on behalf of an estate.
The company also provides Inheritance Advances for beneficiaries who may need access to part of their expected inheritance before probate has been completed.
An Inheritance Advance can allow a beneficiary to access up to 50% of their anticipated inheritance, providing greater financial flexibility at a time when they might otherwise have to wait months for the estate to be settled.
Provira’s advances are assessed against the value of the estate or anticipated inheritance rather than being structured like a conventional personal loan. The company uses simple interest rather than compound interest, with no monthly repayments and no early repayment fees.
The specialist finance provider works closely with solicitors, financial advisers and other professional advisers, as well as directly with executors and beneficiaries, to identify potential solutions where a lack of liquidity is delaying the administration of an estate.
“The key issue is often not whether an estate has sufficient wealth, but whether that wealth is accessible at the right time,” said Gauke. “Property, investments and other assets can take time to realise, but Inheritance Tax and other estate costs cannot always wait.
“By providing access to funds during this period, we aim to make the financial side of probate more manageable and give families and their advisers another option when cash flow becomes a problem.”
With the probate process potentially taking many months, specialist finance can provide a practical solution for estates where immediate liabilities need to be settled before assets can be released or sold.
Provira’s Estate Advance and Inheritance Advance products are available to eligible applicants across the UK.