Tower Street Finance

Here are some frequently asked questions about Inheritance Advance and IHT Loan. If your question isn’t answered here you can call us on 0343 504 7100 or email info@towerstreetfinance.co.uk.

What is the difference between an Inheritance Advance and an IHT Loan?

An Inheritance Advance is for beneficiaries of an estate who want to access a proportion of the inheritance earlier. IHT Loan is for executors (or a person applying to be a Personal Representative when there is no will) who need money to settle the IHT liability on an estate so that they are able to get a Grant of Probate.

Why take out an Inheritance Advance when I can wait for my inheritance?

Inheritance Advance is designed for beneficiaries who want to get hold of their inheritance sooner for any reason – this could be to pay off current debts, free up disposable income, make home improvements, pay for education/social care costs or move house.

If I don’t take an Advance how long could the legal process take for me to receive my inheritance?

It all depends on how complicated the estate is – and all cases are different. Based on our market research, the average time for an estate to be distributed is around 12 months.

What if the estate takes a long time to sort out?

Once we’ve given you the Advance, we take the risk if the estate takes longer to liquidate or the assets sell for less than expected. The interest rolls up on the outstanding Advance (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.

There wasn’t a Will left – does that matter?

Not at all. There are rules that apply when there’s no Will – this is called intestacy and it sets out how much each beneficiary gets.

How do I pay the Advance back, I can’t afford to make repayments?

You don’t have to make any repayments. The Advance (plus all fees and interest) are repaid directly from your proceeds of the estate – there is no personal liability.

Can I have an Advance against everything I’m inheriting?

We will lend against a percentage of the value of assets that can be reliably valued and are expected to be sold by the executor(s) of the estate. This will include things like property in the UK, bank accounts, investments and quoted shares but not foreign property or unquoted shares.

Is there a minimum and maximum amount of Advance I can get?

There’s no set minimum for an Advance, but the maximum will be up to 60% of the net assets that can be valued and will be sold.

Can I get an Advance if the other beneficiaries don’t want one?

Yes – the Advance is for individual beneficiaries and can be taken out individually or by several of them, but there is no link between them.

What happens if another beneficiary or Will comes to light and my Inheritance is reduced?

It won’t affect you. Once we have made an Advance, any changes to the distribution of the inheritance is our risk.

I’ve not got a great credit history – does that matter?

Your credit history isn’t relevant because the Advance is repaid from your inheritance and is not related to your credit profile; we will only check for (undischarged) bankruptcy.

I don’t have a job – does that matter?

No – we don’t do any assessment of your income and affordability as the Advance is repaid out of the proceeds of the estate.

Am I too old to get an Advance?

Because the Advance is repaid from your inheritance we do not have an upper age limit.

Is this like a payday loan?

No, the Advance is made based on a percentage of your expected inheritance and is repaid once the estate is ready to be distributed to you.

Is the Inheritance Advance a secured loan?

No, the Advance is linked to your inheritance, so it’s not secured on any property or land.

I am a beneficiary and also the executor – can I apply for an Inheritance Advance?

Absolutely – anyone that is a beneficiary can apply for an Advance.

As the executor I am liable for paying the IHT – do I have any liability with an IHT Loan?

No – an IHT Loan becomes 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.

There is more than one executor – do I need permission from all of them to get an IHT Loan?

No – any one executor (or Personal Representative) is able to take out an IHT Loan.

Do I need the permission of the beneficiaries to get an IHT Loan?

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.

I am the executor but not a beneficiary – can I still take out an IHT Loan?

Yes – as the Loan is repaid by the estate, it does not matter who the beneficiaries are.

What are the interest/fees with Inheritance Advance/IHT Loan?

There is an origination fee (which covers our cost to underwrite the product) which is 2% of the size of the Advance/Loan (this is capped at £1,500 and can be added to the balance).  There is also interest of 1.5% per month which rolls up and is added to the balance, which is repaid when the Advance/Loan is repaid. There are no other fees, e.g. for early repayment.

How quickly would I be able to receive my money?

It depends on a couple of things.  Firstly, the size of the Advance/Loan – under the Consumer Credit Act, any loan that is less than £60,260 requires us to give the customer a ‘cooling off’ period of 14 days after the loan is agreed in case they wish to change their mind. For loans that are greater than £60,260 there is no requirement to offer a ‘cooling off’ period. Secondly it depends on how quickly the professional firm can provide us with the information we require on the estate. If you are eligible for an Inheritance Advance or IHT Loan, and if we get all the information from the firm, and the Advance/Loan does not have a ‘cooling off period’ the funds can normally be released within 48 hours of it being approved. If there is a ‘cooling off’ period and/or the firm takes longer to reply, it can be longer.

There is no professional firm engaged to manage the estate – do I need one?

We do require that there is a professional firm managing the estate – we can help you find one, please get in touch.

Who pays the money back to you, me or the firm managing the estate?

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.

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.

Where can I get bereavement support?

Most people experience grief when they lose someone close to them. Support is available to you if you are finding it hard to cope. The following websites and organisations can assist you:

Cruse: https://www.cruse.org.uk/get-help/about-grief/how-to-help-someone-bereaved

At a Loss: https://www.ataloss.org

NHS: https://www.nhs.uk/conditions/stress-anxiety-depression/coping-with-bereavement

Where can I get financial support?

If you are struggling with debt or require advice on how to manage your finances then there are organisations that can help:

StepChange: https://www.stepchange.org

Christians Against Poverty: https://www.capuk.org

How do I take out an Inheritance Advance or IHT Loan?

Give us a call on 0343 504 7100 and we will talk you through the process, or email us at info@towerstreetfinance.co.uk.

How do I make a complaint?

Please find a copy of our complaints procedure here