Estate Expense Funding

 

Are you an executor or personal representative faced with unexpected estate administration expenses?

Estate Expense Funding is a product available to executors and personal representatives who can’t fund the cost of administering an estate.

Unique benefits of Estate Expense Funding

 

  • No credit checks
  • No personal liability
  • No charges over property
  • No monthly repayments
  • No requirement for a Will

How does Estate Expense Funding work?

When you receive Estate Expense Funding from Tower Street Finance, 100% of your eligible expenses will be covered. Unlike a traditional loan, there are no credit checks, and you do not have to own a home as there are no charges over any property. After you’ve received the funds and paid all of the expenses, the loan will be repaid from the estate proceeds, so there is no financial risk or liability to you.

Who is Estate Expense Funding aimed at?

Estate Expense Funding can provide financial relief to executors or personal representatives who are liable for paying the testamentary expenses associated with an estate. Taking out Estate Expense Funding will not only benefit you as the executor/personal representative but it will also allow any beneficiaries of the estate to receive their inheritance as soon as possible.

The facts about Estate Expenses

  • Average funeral costs around £4,000
  • Estate Administration Fees can cost around 5% of the estate value
  • It takes around 12 months on average for an Estate to be distributed
  • IHT is classed as an estate expense

What can Estate Expense Funding be used for?​

It may come as a shock to be faced with estate administration costs following a death, and you may not be financially prepared to cover them. Unpaid testamentary expenses could delay the process of planning the funeral, selling property, or distributing the inheritance, leading to additional stress at an already difficult time. Estate Expense Funding can help ease the burden of these costs, and the funds can be used to help with all manner of things, such as:

 

  • Help paying for a funeral
  • Professional fees e.g. probate, valuers, surveyors
  • Estate property repairs and maintenance
  • House clearance costs

How does Estate Expense Funding work?

When you receive Estate Expense Funding from Tower Street Finance, 100% of your eligible expenses will be covered. Unlike a traditional loan, there are no credit checks, and you do not have to own a home as there are no charges over any property. After you’ve received the funds and paid all of the expenses, the loan will be repaid from the estate proceeds, so there is no financial risk or liability to you.

Who is Estate Expense Funding aimed at?

Estate Expense Funding can provide financial relief to executors or personal representatives who are liable for paying the testamentary expenses associated with an estate. Taking out Estate Expense Funding will not only benefit you as the executor/personal representative but it will also allow any beneficiaries of the estate to receive their inheritance as soon as possible.

The facts about Estate Expenses

  • Average funeral costs around £4,000
  • Estate Administration Fees can cost around 5% of the estate value
  • It takes around 12 months on average for an Estate to be distributed
  • IHT is classed as an estate expense

How to get Estate Expense Funding

Application
Short online form or speak to our team if you prefer

Request estate information from solicitors

Complete paperwork
The fund is available to cover expenses
Estate repays the funding

Why choose Tower Street Finance?

Here are just a few reasons to choose Tower Street Finance for Estate Expense Funding:

  • We are fully regulated and authorised by the Financial Conduct Authority.
  • Our management team has over 100 years’ combined experience in financial services, credit management and risk.
  • We are passionate about using data to provide a product and service that benefits you.
  • We have a rating of “Excellent” on the independent review site Trustpilot. See the direct quotes below from customers who have benefitted from taking out Estate Expense Funding to cover property expenses.

Hear from those who have benefitted from Estate Expense Funding

“I had no idea I’d be responsible for covering repairs to the house before it could be sold and this delayed the inheritance being distributed. This product would have really helped.”

“There are so many assets in the estate but as executor and beneficiary I can’t access them until I’ve paid all these costs upfront and I simply don’t have the funds to do it.”

“Being able to take out this product means I’ll be able to get the house ready for sale and hopefully get what it’s worth at market value rather than selling it in a state of disrepair.”

Estate Expense Funding: FAQs

We understand you might want to know more about Estate Expense Funding. That is why we have put together some of these frequently asked questions to provide the information you need.

How much does Estate Expense Funding cost?

If you are approved for Estate Expense Funding, an interest rate of 1.5% per month will be added to drawn balances within the facility for the first 30 months of the loan. You can see a representative example below of how this will work in practice.

Can I get Estate Expense Funding with a poor credit history?

Yes. Your credit rating and financial history will not affect your eligibility for Estate Expense Funding because the loan is repaid from the estate funds. The only thing for which we may check when you apply is an undischarged bankruptcy.

What is considered an Estate Expense?

An estate expense is any cost for which an executor/personal representative is personally liable. Inheritance tax is a common estate expense, and we offer Inheritance Tax Loans (IHTs) to help cover the cost of this in the UK. However, there are other unexpected costs with which an executor or personal representative may be faced with.

You may need help paying for a funeral or clearing out a house following a death. If you are responsible for selling property belonging to the estate, you may also need to pay for repairs prior to putting it on the market, as well as cover the legal/professional fees involved with selling a home. Each of these costs are considered an estate administration expense.

Let’s talk it through…

Our professional customer service team are here to help you with any queries you may have. They can take your application over the phone or you can apply online below.

Representative 19.6% APR

Representative example
The Representative APR is calculated assuming that the entire facility is drawn in full on the date of the loan, and repaid in full after 12 months. However, interest is only paid on drawn balances. By way of a worked example, if we agree a facility of £10,000, to be drawn in nine instalments – with the total being repaid in a single payment after 12 months – then the total amount repayable would be £11,273.25. This is made up of repayment of the total facility and interest of £1,273.25. The effective rate for the credit in this example is 12.7%.

If there’s no Will and no executor, the loan is also available to the person applying to be ‘personal representative’.

The Estate Expense Funding product is a credit agreement which provides you with access to credit which must be used to pay Testamentary Expenses on the estate and is paid directly to the professional firm managing the estate. The loan does not create a charge over any land or property. Access to the product does not rely on your personal credit rating and, other than in cases of fraud/breach of terms & conditions, repayment of the loan together with accrued interest, is made out of the estate proceeds. We assess the value of the estate to ensure that there will be sufficient proceeds to cover the loan plus accrued interest. Interest is only charged for the first 30 months of the loan on drawn balances. The estate must be administered to distribution by a recognised administrator.

Estate Expense Funding can also be used where a Trust Company is appointed as the professional executor/personal representative. In this instance the loan is not regulated by the CCA but all other terms are identical to the CCA-regulated Estate Expense Funding.