Probate finance is a type of short-term lending designed to help executors and beneficiaries access money tied up in an estate before probate has been completed or assets have been sold.
It can be particularly useful when an estate is valuable but does not have enough readily available cash to pay Inheritance Tax (IHT). This can create a difficult situation for families: they are dealing with bereavement while also facing a substantial tax bill that needs to be paid within a relatively short timeframe.
Probate finance is also often called estate advance or inheritance tax loan – it is used for personal reasons and does not fall under business loans.
When is Inheritance Tax due?
Inheritance Tax is normally due by the end of the sixth month after someone dies. For example, if someone dies in January, the IHT payment deadline is 31 July. HMRC can charge interest when IHT is paid late.
The standard rate of IHT is currently 40%, although allowances, exemptions and reliefs can significantly reduce the amount payable. The basic nil-rate band is £325,000, while a qualifying estate may also benefit from a £175,000 residence nil-rate band.
For illustration, assuming only the £325,000 basic allowance applies, with no debts, gifts, exemptions or other reliefs:
| Estate value | Illustrative taxable amount | Illustrative IHT at 40% |
|---|---|---|
| £1.5 million | £1.175 million | £470,000 |
| £2 million | £1.675 million | £670,000 |
| £3 million | £2.675 million | £1.07 million |
These are simplified examples rather than individual tax calculations. The actual liability can be substantially different where a residence nil-rate band, transferred allowances, Business Relief, Agricultural Relief, charitable giving or other provisions apply.
HMRC’s latest detailed statistics show that 30,400 UK deaths resulted in an IHT charge in 2023–24, equivalent to 4.72% of UK deaths. The average IHT bill among taxpaying estates was £231,000.
For a family already coping with grief, finding hundreds of thousands of pounds before estate assets can be accessed can be extremely challenging. This is where probate finance may provide a solution.
A probate finance loan example from Provira
Provira offers Estate Advances designed to help executors access funds from an estate to pay IHT and other estate expenses.
Provira says it can provide loans from £20,000 to more than £1 million, with advances of up to 50% of the estate’s net value. Its current pricing is an arrangement fee of 1–2% and 1.5–2% simple interest per month.
For example, a £50,000 advance with a 2% arrangement fee and 24% annual interest would produce £12,240 of interest over 12 months, plus £51,000 in capital and fees, giving a total balance of £63,240. (Source: Provira)
What information do you need to provide for a probate finance loan?
Typically, lenders will need information allowing them to establish the value and liabilities of the estate. Provira lists documents including:
- The death certificate
- Will where applicable
- Grant of Probate or Letters of Administration if available
- Details of estate assets and liabilities
- Proof of identity, address and bank details
A main part of the application process is handled by the borrower’s probate solicitor.
How fast can you get a probate finance loan?
Applications for probate finance and estate advances can normally be assessed within 48 hours, with funds typically released within around three days once the required information and signed documentation are complete.
There are occasions where this can be actioned quicker than 3 days and some applications will take weeks if they are relying on asset valuations and feedback from solicitors.
Is probate finance expensive?
Probate finance can be more expensive than conventional borrowing, but the comparison needs to consider how quickly the money can be repaid and whether other finance is actually available.
The typical 1.5–2% monthly rate is higher than many mainstream personal loans. For comparison, Moneyfacts reported an average rate of around 8.0% APR for a £10,000 five-year personal loan in June 2026.
Bridging finance is another alternative. Typical UK bridging rates in 2026 have been around 0.55–1.5% per month, although arrangement, legal and other fees can also apply.
The key difference is that probate finance is specifically structured around the estate, rather than relying primarily on the borrower’s income and personal credit profile.
Common alternatives to probate finance
| Finance option | Typical rate | Typical loan amount |
|---|---|---|
| Probate finance | 1.5–2% per month* | £20,000–£1m+* |
| Bridging loan | 0.55–1.5% per month | Varies; often £50,000+ |
| Personal loan | Around 6–10%+ APR for many mainstream offers | Typically up to £50,000 |
| Grant on credit | No loan interest rate | Amount depends on HMRC agreement |
A grant on credit is also worth considering. HMRC may allow payment of some IHT to be postponed until after probate where the estate cannot access the necessary funds.
Ultimately, probate finance is about solving an estate liquidity problem: where significant wealth exists, but the family cannot access it quickly enough to meet an immediate IHT or estate expense. Taking your time, professional advice from your solicitor and considering your alternatives is always sensible.