Unique estate expense funding product launches
A unique new product to help executors and personal representatives who have expenses to pay as part of their duties but don’t have the funds readily available to pay upfront costs has been launched by an innovative Yorkshire based funder.
Tower Street Finance has launched Estate Expense Funding as part of its range of funding services helping beneficiaries and executors working through the administration of an estate.
As part of the executor/personal representative role there are various costs involved in dealing with the estate. These testamentary expenses are prioritised for repayment when the estate is distributed, however this can take up to 12 months.
Estate Expense Funding is not a traditional loan – there are no credit checks and you don’t have to own a home as there are no charges over any property.
And because the loan is repaid from the estate as a priority there are no monthly repayments so income and affordability don’t need to be assessed.
Once the Grant of Probate is issued the loan is repaid from the estate proceeds, before any inheritance is distributed to beneficiaries.
Says Dicky Davies:
“As with all our products we’ve carried out research with our partner firms and this is a real problem for many of their customers, and the partners themselves as they sometimes end up funding these costs, using up valuable working capital.
“People don’t always realise that as well as IHT there are many other expenses that need to be paid before the inheritance is released such as funeral costs, professional fees, property repairs, house/garden upkeep, etc. which all adds up.
“Every professional who is dealing with estates at the moment knows that there are crippling delays for people waiting for the Grant of Probate, and this is having a knock-on effect on practitioners who are also having to wait for repayment of their fees.
“Our products mean that their customers don’t have to be concerned about how to fund these expenses – they can access a proportion of the inheritance sooner, taking the worry out of the process for both parties.
“An additional benefit for the customer is that they can cover the costs of prepping the house for sale at market value rather than having to rush a sale through at a lower price – it’s a win-win.”