UK Households Turning to Probate Loans for Cash During Delays
Many families in the UK are now turning to probate loans to access money while they wait for a deceased loved one’s estate to be settled. These loans can help people cover legal costs, pay taxes, maintain a property, or simply help them manage their day-to-day finances during what is often a long and difficult waiting period.
What Is Probate?
Probate is the legal process of dealing with someone’s estate after they die. This includes confirming their will is valid, collecting all their assets like property and money, paying off debts and taxes, and then passing on what is left to the people named in the will. In the UK, probate can take several months, and in more complex cases, it can take over a year.
During this time, the people who are set to inherit—usually close family members—do not have access to the money or property. They may be responsible for costs like legal fees, home maintenance, or inheritance tax, but without access to the estate’s funds, they can struggle to pay for these expenses.
How Probate Loans Work
Probate loans, also called inheritance advance loans, allow people to borrow money based on what they are due to inherit. The loan is usually repaid directly from the estate once probate is complete. This means the borrower does not have to make monthly payments or provide a personal guarantee. The estate acts as security for the loan.
The amount someone can borrow depends on the value of the inheritance. Some people borrow £20,000 to cover smaller costs like solicitor fees, house repairs, or funeral expenses. Others may borrow £100,000 or more to make larger investments, pay off debts, or upgrade a property they plan to sell after probate ends.
Why Families Use Probate Loans
There are many reasons families turn to probate loans. Some need to pay inheritance tax before they can even get a grant of probate.
Others need to cover legal bills or keep up with mortgage payments on a property in the estate. If a home is being sold, the family may need to pay for renovations or upgrades to get a better price. In other cases, families just need help with day-to-day living costs, especially if they were relying on the financial support of the person who passed away.
Probate delays have become more common in recent years. According to HM Courts & Tribunals Service, the average waiting time for a grant of probate in 2024 was 9-12 months and in some cases, longer depending on the complexities. This has increased demand for probate loans, especially in cases where families face financial pressure.
Things to Consider
While probate loans can be helpful, they do come with interest and fees. The cost is usually taken out of the inheritance before it is paid, so it’s important to understand the terms. Many companies offer these loans, and terms can vary, so getting advice before borrowing is a good idea.
Conclusion
Probate loans are becoming a useful tool for families who need access to money while waiting for an estate to be sorted out. Whether it’s to pay legal costs, fix up a property, or simply cover everyday bills, these loans offer a lifeline during a stressful time. However, like any loan, they should be used carefully and with full understanding of the costs involved.
