We are living through unprecedented times: the Covid-19 pandemic has caused UK death rates to surge – the toll now more than 120,000. Excess deaths are the highest ever recorded.
The pandemic has highlighted a broad range of challenges, including the importance of planning ahead. Many of those now suffering unexpected losses are also struggling financially, not helped by the delays in obtaining probate. Todays Wills and Probate recently reported that “delays are now so bad that registries are only responding to questions about applications they’ve had for eight weeks. This is according to a senior associate at Wilsons, a private wealth law firm”.
In addition to the emotional distress, these delays can result in significant financial issues for Executors of Estates. A range of options do exist to support people through this process. Bank loans can be applied for and the Government offer support to cover funeral costs via the Funeral Expenses Payment. However, payment of Inheritance Tax, legal fees and other Estate liabilities (including the repair/renovation of a property within the Estate) can add a level of complexity that requires alternative solutions.
The Ampla Finance Executor Loan is specifically designed for this purpose. Loans are available of up to 70% of the value of the Estate with no repayments required until the Estate is settled. The application process is very straightforward enabling Executors to access funds quickly at exactly the time they need it.
The loan also provides an opportunity for professional Estate Administrators to reduce their Work In Progress (WIP). It is common for these fees to be paid at the end of this case. Consequently, the delays in obtaining Probate mean that many firms are having to carry more WIP for longer. Of course, the cost of the loan would reduce the final value of the Estate, but firms do have the option to offer discounted fees in exchange for early payment – that is entirely a matter for the Estate Administrator and their client(s).
In addition to the Executor Loan, Ampla Finance also provide Beneficiary Loans. Available pre and post Grant of Probate it enables Beneficiaries access to up to 70% of their future inheritance now. It can be used for any purpose and is, again, only repaid when the Estate is settled.
To find out more about the Ampla loans please contact Steve Gauke, [email protected]