Bridging Finance Solutions

How to unlock funds in probate with bridging

Bridging Finance Solutions (BFS) has suggested that bridging loans can be used to resolve probate issues when concluding a will.

Beneficiaries of a will could pay legal fees and inheritance tax straight away using the short-term finance product.

This would allow them to release 70% of the value of a property without making any interest payments.

Lee Gilmore, business development consultant at Bridging Finance Solutions (pictured above), said: “Carrying out someone’s will is not always as straightforward as we might like.

“Although the ownership of their various assets might be easy enough to resolve, the average person will take on a network of debts and credits which must be resolved in their will.

“Bridging finance offers a person’s family some breathing space and they can use the loan to pay off debts instead of being forced to sell assets as quickly as possible.”

When the will has been concluded, the beneficiaries will face tax implications.

However, a bridging loan can help to streamline and manage the process, BFS claimed.

“Many estates in the UK become liable for inheritance tax, which must be paid within six months and typically a 40% share of the estate upon liquidation,” added Lee.

“Again, this financial pressure can be eased through the use of bridging finance, as it enables the will’s executors to restructure and refinance to meet the cost of inheritance tax.

“The time pressures that quickly become apparent would require that many estates be quickly broken down and sold, rather than being realised at their full value.

“Bridging loans are, therefore, a helpful tool that enables individuals to pass on their wealth through generations, and allows inheritors to benefit more from their parent’s estates.”

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