Inheritance tax has an unkind timing rule: much of it must be paid before the grant of probate — which is also before the estate’s assets can be sold to pay it. A probate bridging loan breaks that deadlock, using property in the estate (or property you own) as security, so the tax gets paid, probate proceeds, and nothing is sold in a hurry at the wrong price.
The problem this solves
Executors face a circle: HMRC wants inheritance tax within six months of death, the grant of probate often can’t issue until arrangements for the tax are in place, and the money to pay it is usually locked inside the very property the estate can’t yet sell. The traditional answers — personal borrowing by the executors, HMRC instalment plans with interest, or a rushed sale below value — all cost the beneficiaries money. Short-term secured lending is usually cleaner.
How we structure it
The right structure depends on where the estate is in the process and who is borrowing — executors, beneficiaries, or trustees. We lend secured on estate property or on other property the borrowers own, first or second charge, £50,000 to £25,000,000, with interest retained so the estate makes no monthly payments. The exit is the estate: the sale of the property, or distribution once probate completes. We work with estates held in trusts and complex structures routinely, and we coordinate directly with the estate’s solicitors.
Beyond the tax bill
- Buying out a beneficiary who wants cash while others want to keep the property
- Funding repairs so an inherited property sells at full value rather than “needs work” value — refurbishment finance can sit alongside
- Settling estate debts to stop interest running while the sale completes
Frequently asked questions
Can a bridging loan pay inheritance tax?
Yes. Bridging secured on estate property or other property you own can pay an IHT bill before probate is granted, with the loan repaid when the estate property sells or the estate is distributed.
Can executors take out a bridging loan?
Yes — executors, administrators, beneficiaries and trustees can all borrow, depending on the estate’s stage and structure. We agree the right borrower and security with the estate’s solicitor.
How fast can a probate bridge complete?
Decision the same day; completion typically within one to three weeks. Probate cases involve more legal coordination than a standard bridge, so early sight of the estate paperwork speeds everything up.
Talk to us — or have the estate’s solicitor call us
Tell us the property, the tax position and the timeline. Same-day answer, and we are comfortable dealing with your solicitor or accountant directly.