Bridging finance can be useful in relieving the financial pressures of the probate process.
Probate is the system of dealing with property and wealth after someone dies. If the majority of the estate’s value is property, the executors of an estate may need to pay legal fees and inheritance tax before the property has been sold and funds made available. If the executor cannot afford to pay these fees out of their own money, a bridging loan can be secured against the property to pay any bills.
Without a bridging loan, the executor may want to sell the property as soon as possible by reducing its price. A bridging loan means that there will be no hurry to sell the house and it can be offered at its full market value.
An estate could contain debts from credit cards and loans, and these will need to be paid off. This is often done by selling assets as quickly as possible. A bridging loan can be used to pay the debts and allow some time for the assets to be sold.
People dealing with a deceased person’s estate are often grieving. They can do without the added pressure of having to sell property and other assets as quickly as possible to pay inheritance tax, debts, and other fees. A bridging loan allows the family to take their time in selling assets, and receive their full market value. This results in the inheritors benefiting more from the wealth left by their relatives.