We speak with Steve Gauke, the Managing Director of Provira, now the UK’s leading Probate Loan provider.
Steve tells us how Provira can enable beneficiaries to immediately access their inheritance and assist executors in paying inheritance tax or other estate liabilities. He also comments on the recent inheritance tax changes for British farmers.
Who is Provira?
Provira offers affordable finance to beneficiaries and executors of estates.
We provide two types of loans. The first is an Inheritance Advance aimed at beneficiaries of estates. Many people have to wait 12 months or more from the date of death for probate to be granted, assets sold and funds distributed. Rather than waiting for all this to happen we can provide a loan now based on the value of the future inheritance.
The second type of loan is an Estate Advanced aimed at executors of estates. This is typically used to pay inheritance tax, repairs or renovations to a property in the estate or any other estate expense.
Applications can normally be processed very quickly and funds released within a few days. The minimum loan size is £20,000 and there is no maximum. We very regularly provide loans of £500k+, sometimes into the millions. It just depends on the individual circumstances of the estate.
For both types of loan there are no monthly repayments and no early repayment fees. The loan is simply repaid in full when the assets in the estate are sold/liquidated and prior to distribution to the beneficiaries.
A Quick Lesson on Inheritance Tax
Inheritance makes up any property, money and possessions that a deceased person has passed onto their beneficiaries and loved ones.
The first £325,000 of inheritance is tax-free, but anything after this amount may be subject to 40%. However, there are numerous allowances that might be applicable that can substantially increase the £325,000 threshold, sometimes to as much as £1m.
It is almost always worth consulting a solicitor or probate specialist if you are unsure what you can claim. Getting it wrong can be a very expensive mistake!
Inheritance tax needs to be paid before probate can be granted and you can’t sell assets in the estate until this has happened. Thus, if there are insufficient liquid assets (i.e. cash in bank accounts) to pay the IHT it can cause serious problems for executors. Whilst it may be possible to make an arrangement with HMRC, this is not always easy or possible.
This is when we can help. We will provide a loan based on the net assets in the estate and can even pay the IHT directly to the HMRC.
It’s a quick and simple solution to a difficult issue.The loan is repaid in full when probate is granted and assets sold. Thus, no monthly payments and no early repayment fees.
How Did The Business Come About?
The business started towards the end of 2020 when we saw that Covid was causing a significant delay in probate being granted. Probate is the legal process that entitles executors to manage estate assets.
We understand that losing a loved one is a very stressful time for everyone involved. The legal and financial implications of dealing with an estate only add to this. Our aim is to alleviate some of this stress for both beneficiaries and executors.
At the time, there did not seem to be many providers of inheritance or estate advances on the market and we wanted to provide an affordable and sustainable solution, drawing on our background in the financial services industry.
Today, following the recent Autumn budget, more people have been drawn into these issues and have higher inheritance tax bills to pay - and we are well positioned for this.
What Are The Key Features Of Provira?
The whole business is designed around customer service, providing quick decisions and immediate access to funds. The information we require for underwriting should be readily available and, once received, we will be able to process applications within a few days.
Our underwriting team is exceptional and all applicants will have a single, dedicated point of contact throughout the whole process. They will always speak to a real person and that same person will take the application through from initial enquiry to release of funds.
This means we are able to truly understand the specific circumstances of each estate we deal with and make informed decisions. Every estate is different but this approach means we can properly assist, whatever the situation. I think our Trustpilot reviews are testament to this - https://uk.trustpilot.com/review/provira.com
Other Key Features of The Loans Are:
- Very reasonable rates. Typically a 2% arrangement fee and 2% per month.
- We charge simple interest, not compound interest. Thus, borrowers are not paying interest on the interest.
- No monthly repayments and no early repayment fees. Loans are repaid in full when assets in the estate are sold/liquidated and funds become available.
- We can pay the loan directly to you, your solicitor or HMRC depending on your circumstances.
- Loans are repaid by the solicitor dealing with the estate or the solicitor dealing with the sale of the major asset(s) (e.g. your conveyancing solicitor).
What Information Do You Need To Apply With Provira?
We require a few simple details to check your eligibility including:
- Proof of your ID and address
- Copy of the Death Certificate and, if there is one, the Will. If there is no Will the Rules of Intestacy will apply and this will be the basis on which we underwrite the application.
- Details of the assets and liabilities in the estate and evidence to support current valuations (i.e. bank statements, estate agent valuations etc.).
- Evidence that any properties in the estate are appropriately insured.
- Confirmation of any disputes regarding the distribution of the estate.
All of this is information you will need to apply for probate so we shouldn’t be asking for anything that you or your solicitor doesn’t already have.
What Do You Think About Rising Inheritance Tax Bills For British Farmers?
Changes in Agricultural Property Relief in the recent Autumn Budget means that 15,000 more British farms could be subject to high inheritance tax.
I wonder how much money this truly raises for the Government and am sympathetic because it is a harsh move on people who provide such a valuable service.
If this increases the financial burden for some farmers, we will always see if we can offer our assistance. When we determine the eligibility for an advance, we treat land and property in a similar way and we would be delighted to assist.
Steve Gauke was speaking to Daniel Tannenbaum, for more information visit Provira.com
