Loan against inheritance

NdHAero

Hi, this is my first post. But not sure where else to go. My Mum passed away earlier this year, my Dad several years prior. The inheritance is now with the solicitors and going into probate. The solicitors have so far valued the estate at 1.5 million (it's London!). There is a will, that states equal between me and my sister. My issue is, I am totally up the creek financially, and am not sure how to pay next months bills. Is there anyway of taking a loan against this future inheritance? I am only talking 10K, so the inheritance will more than cover this. Talked to the solicitor today, and they reckon that it will take 8 weeks for cash to be released. Any help most appreciated.

Tixy

It can sometimes be possible to get a bridging loan against a delayed inheritance.
That said it could take some time to sort out and may not be much quicker than the inheritance.

Have you asked the executor if there may be a chance they could make a partial distribution? Especially if you were previously supported financially by mother.

If neither of those are an option - what bills are you going to struggle with? could you try to arrange delayed payments to your creditors or make partial payments and explain the situation and that you will be able to make up the payments once the inheritance is received.

Foxy-Stoat_3

Can you afford to meet the monthly repayments without the inheritance, if you can't afford this months bills then probably not?

You can apply for any loan you like, if you are accepted then happy days.

I don't think you can put down inheritance as a source of income on loan applications.

DCFC79

How come your not sure how to pay next months bills ?

Whats changed from the past presuming you haven't had a problem paying the bills ?

Duke203

10 grand to pay next month's bills? Perhaps downgrade your shopping for a few weeks to the Fortnum & Mason's value range of foie gras? Rather than charter flights, just go first class or something like that as well?.

NdHAero

Hi, to clarify things. Due to medical reasons i am having to move to part time hours, hence the concern about paying bills etc.

To be honest the 10K is wildly conservative, as I certainly don't require that amount to pay bills etc. If it is only 8 weeks, then around the 2K would suffice. BUT, I don't know for certain how long these things take, so my thoughts were to cover me for the rest of the year.

I like the partial distribution idea, and saw some mention of such a concept on the internet. In addition, I like the suggestion of mentioning to the solicitors that my Mum used to support me. Her bank account would prove this.

In addition, my medical issue is I'm on Dialysis, and was hoping to start this at home, rather than going to the hospital 4 times a week. One of the criteria is that they inspect your house, so I may require work doing - new bathroom, renovate the spare room ,etc. I had an informal agreement with my Mum, that if required she would pay for these.

As a first post, I am most appreciative of all your advice...even the cynical one!

CKhalvashi

NdHAero wrote: »

Hi, to clarify things. Due to medical reasons i am having to move to part time hours, hence the concern about paying bills etc.

To be honest the 10K is wildly conservative, as I certainly don't require that amount to pay bills etc. If it is only 8 weeks, then around the 2K would suffice. BUT, I don't know for certain how long these things take, so my thoughts were to cover me for the rest of the year.

I like the partial distribution idea, and saw some mention of such a concept on the internet. In addition, I like the suggestion of mentioning to the solicitors that my Mum used to support me. Her bank account would prove this.

In addition, my medical issue is I'm on Dialysis, and was hoping to start this at home, rather than going to the hospital 4 times a week. One of the criteria is that they inspect your house, so I may require work doing - new bathroom, renovate the spare room ,etc. I had an informal agreement with my Mum, that if required she would pay for these.

As a first post, I am most appreciative of all your advice...even the cynical one!

Partial distribution, if possible, would probably be the best way to go.

With the medical condition, good luck!

CK

PoorCharleyBear

some banks offer IHT loans but they are tied up with loads of extra conditions and the interest rate is phenomenal. These were designed to pay the tax - which you have to do, before probate is granted- so are definitely in the bank's favour.

Have you made arrangements to pay the IHT ahead of probate being granted and funds released?

longtermplanner

PoorCharleyBear wrote: »

Have you made arrangements to pay the IHT ahead of probate being granted and funds released?

Assuming that the bulk of the money comes fromthe sale of a house, then you don't have to pay all the IHT before probate is granted. See http://www.mcglennons.co.uk/our-services/probate-and-administration-service/wills/

NdHAero

Thank for all the advice. The estate is with the solicitors, and the properties have been valued. So the solicitors will calculate the tax implications, as that needs to be sorted before any funds are realised. I believe this can be off-set against the value of the property, and paid off over a ten year period. Neither me or my sister have any intention of selling in the near future. So post inheritance tax, I believe that the share would be about £550K each. For myself, that would be £300K in property, and the rest in cash. Yes, these are silly numbers! Equivalent to 15 years of my annual wage!

I think i will go for the partial distribution idea, and if that doesn't work, shall talk to my mortgage company and see if i can take a 'holiday'. Solicitors reckon cash will be released from the estate in about two months, so this could give me the breathing space.

Thanks again,

Mojisola

NdHAero wrote: »

For myself, that would be £300K in property, and the rest in cash.

If the estate has money like that in cash, I think the IHT will have to paid upfront.