FAQs
Probate lending solutions FAQs
Here are our range of frequently asked questions. If the question you have isn’t answered here please contact us and we’ll be happy to help.
About Tower Street Finance and probate lending solutions
Who are Tower Street Finance?
What is Probate Lending?
What is an Inheritance Advance?
What is an Executor Loan?
Why take out an Inheritance Advance when I can wait for my inheritance?
If there is more than one executor, do I need permission from all of them to get an Executor Loan?
I am the executor but not a beneficiary, can I still take out an Executor Loan?
Do I need the permission of the beneficiaries to get an Executor Loan to pay IHT?
As the executor I am liable for paying the IHT – do I have any liability with an Executor Loan?
Do I have to pay the IHT to HMRC?
Does it matter where I live?
Do I have to pass a credit check?
Do I need to prove I have a regular income?
Do I need to worry about paying the funds back?
If anything unexpected happens, am I liable?
Am I too old to use your products?
Does there need to be a Will?
Is there a minimum and maximum amount you can provide?
How much does it cost?
What is the Representative APR?
How do the Credit Agreements work?
How quickly would I be able to receive my money?
Do I have to have a professional administering the estate?
Who pays the money back to you, me or the firm managing the estate?
What if the estate takes a long time to sort out?
How do I make an application?
How do I make a complaint?
Who are Tower Street Finance?
We’re a lender focused on designing innovative financial products for people who are inheriting money and we are passionate about our customers and their needs. We are authorised by the Financial Conduct Authority, FRN 912334.
What is Probate Lending?
Probate Lending solutions help beneficiaries or executors/personal representatives to access tax free cash from the estate of a deceased individual before the estate arrives at distribution.
What is an Inheritance Advance?
An Inheritance Advance means beneficiaries don’t have to wait 12 months for their inheritance.
What is an Executor Loan?
An Executor Loan means executors can fund any expenses they incur including funeral costs, inheritance tax, administration fees or property maintenance costs.
Why take out an Inheritance Advance when I can wait for my inheritance?
If you are happy to wait 9-12 months for your inheritance, then you don’t need an Inheritance Advance. However, many beneficiaries use an Inheritance Advance to pay debts, make home improvements, pay for education/social care costs, move house, go on holiday or just increase their disposable income.
If there is more than one executor, do I need permission from all of them to get an Executor Loan?
No, any one executor, or Personal Representative if there isn’t a will, is able to access an Executor Loan.
I am the executor but not a beneficiary, can I still take out an Executor Loan?
Yes, as the funds are repaid by the estate, it does not matter who the beneficiaries are.
Do I need the permission of the beneficiaries to get an Executor Loan to pay IHT?
No, payment of the IHT is the responsibility of the executor, or Personal Representative; however, the beneficiaries cannot get any of their inheritance until the IHT is paid.
As the executor I am liable for paying the IHT – do I have any liability with an Executor Loan?
No, funds to pay the IHT become a Testamentary Expense, which means that it becomes a liability of the estate, not a personal liability for you. There are no monthly repayments, no requirement to do a credit check on you or take a charge over any property.
Do I have to pay the IHT to HMRC?
No, we will settle the IHT liability with HMRC directly.
Here are some general frequently asked questions about our products
Does it matter where I live?
We normally only lend where the Estate is located in England/Wales however we can lend to Executors who are resident in any part of the UK and also have solutions when they are resident outside of the UK. We are always happy to help potential customers with any challenges they may have so please do get in touch and talk it through with one of our customer advisors.
Do I have to pass a credit check?
No, your credit history isn’t relevant because the funds are repaid from the estate. We will only check for (undischarged) bankruptcy.
Do I need to prove I have a regular income?
No, you do not need a regular income as there are no monthly repayments.
Do I need to worry about paying the funds back?
No, you don’t have to make any repayments. The funds are repaid directly from the estate.
If anything unexpected happens, am I liable?
No, you are not personally liable for anything. If anything unexpected happens such as a long lost beneficiary or another Will, we take that risk.
Am I too old to use your products?
No, age is no barrier to accessing our products. The funds are repaid from the estate so there is no age limit.
Does there need to be a Will?
No, when a person dies without leaving a valid Will, the rules of intestacy apply which set out how much each beneficiary gets. We follow this guidance.
Is there a minimum and maximum amount you can provide?
We can offer from £5,000, up to a maximum of 60% of your inheritance or the net assets that can be valued and will be sold.
How much does it cost?
All products have an origination fee ranging from 1.25% to 1.95%, with a minimum fee of £250 and is capped. The interest rate is from 1.3% to 1.5% per month (16.8% to 19.9% per year), depending on the product selected.
We will clarify the relevant interest rate and fees as we discuss your needs. This will be clearly communicated and agreed before any commitments are made.
Interest is only applied to any loans taken or when funds are drawn down on a facility.
There are no early repayment penalties or fees.
What is the Representative APR?
We have detailed below the representative APR, a corresponding representative example, and a worked example of how a facility works.
Representative 18.6% APR
Representative Example
If you took out funding of £120,000 (the total amount of credit) and the funding was repaid by a single payment out of your inheritance after 1 year, the total amount payable would be £142,375. This is made up of repayment of the capital, interest of £20,875 and origination fee of £1,500. The annual interest rate is 17.2% fixed.
The representative APR and representative example are calculated assuming the entire facility is drawn in full on the date of the loan, and repaid in full after 12 months. However, interest is only payable on drawn balances. By way of a worked example, if we agree a facility of £120,000, to be drawn in 2 instalments 6 months apart – with the total being repaid in a single payment after 12 months, then the total amount repayable would be £137,016. This is made up of a repayment of the total facility, interest of £15,516 and the origination fee of £1,500. The total rate for the credit in this example is a fixed annual interest rate of 14.2%.
How do the Credit Agreements work?
The Inheritance Advance/Inheritance Dispute Funding products are credit agreements which provide you with access to credit which is secured by an assignment of the inheritance monies you are due to receive from the estate (which does not create a charge over any land or property).
For the Inheritance Dispute Funding product, your dispute must be handled by an SRA regulated law firm that we have approved and who has signed our Funding Agreement
The IHT Loan/Executor Loan are credit agreements which provide you with access to credit which must be used to pay either the remaining IHT liability on the estate and is paid directly to HMRC; or Testamentary Expenses on the estate and is paid directly to the professional firm managing the estate. As an IHT Loan settles the remaining IHT liability, it will automatically be deemed a Testamentary Expense.
Access to any product does not rely on your personal credit rating (unless you are an undischarged bankrupt) and, other than in cases of fraud/breach of terms & conditions, repayment of the funding together with accrued interest/fees, is made out of your entitlement to the estate, or, in the case of Inheritance Dispute Funding, any other funds you may receive from the settlement of the dispute. There is an upfront origination fee (2% of the advance, minimum £250) which can be added to the funding. We assess the value of the estate to ensure that there will be sufficient proceeds to cover the loan plus accrued interest/fees. Interest is only charged for the first 30 months of the funding on drawn balances. The estate must be professionally administered to distribution by a firm that we have approved.
The IHT Loan/Executor Loan 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 Consumer Credit Act 1974.
How quickly would I be able to receive my money?
For Inheritance Advance, any loans less than £60,260 require us, by Law, to allow a 14-day cooling off period in case customers want to change their mind. For all other loans, we hope to release the funds within 48 hours of the loan being approved. This also relies on the information required to underwrite the lending being provided swiftly by the solicitor.
Do I have to have a professional administering the estate?
Yes, we do require that there is a professional firm managing the estate. We can help you find a law firm specialising in estate administration and management. Please get in touch with Tower Street Finance to find out more.
Who pays the money back to you, me or the firm managing the estate?
It is the firm managing the estate; they will pay us back the Advance/Loan (plus rolled up fees/interest) before any other money is paid out.
What if the estate takes a long time to sort out?
Once we’ve given you the Inheritance Advance or the IHT Loan, we take the risk that the estate takes longer to liquidate or if the assets sell for less than expected. The interest rolls up on the outstanding amount (only for the first 30 months) but the balance to be repaid out of the estate will never be more than the inheritance you will receive.
How do I make an application?
Give us a call on 0343 504 7100 and we will talk you through the process or email us at info@towerstreetfinance.co.uk. You can also fill in our Application form online.
How do I make a complaint?
Please find a copy of our complaints procedure here.