A probate loan is short-term borrowing taken out against the value of a deceased person's estate before the grant of probate has been issued and before the estate's assets can be released. It is used mainly to cover costs that fall due early, such as inheritance tax, probate fees, funeral bills or the upkeep of a property, or to give a beneficiary an advance on an inheritance they are due to receive.
The borrowing is repaid from the estate once probate is granted and the assets are distributed, so it does not usually rest on the executor's or beneficiary's own income or credit history in the way an ordinary personal loan would. This guide explains how probate loans work in England and Wales, what they tend to cost, and the alternatives that are worth considering first. Figures are current as at August 2026 and are subject to change.
What is a probate loan?
A probate loan is a form of specialist finance secured against an estate that is going through probate. Lenders may also market the same idea under other names, including an executor's loan, an estate loan, a probate advance or an inheritance advance. The common thread is that the money owed is repaid from the estate rather than from the borrower's ordinary earnings.
There is a practical problem these products are built around. After a death, most of the estate's value is locked up in bank accounts, investments and property that cannot be released until the grant of probate is issued. Yet several costs can arise before that point. A probate loan bridges that gap, providing funds now against money that is expected later.
Why executors and beneficiaries use one
Executors often face a timing mismatch. Inheritance tax is generally due by the end of the sixth month after the month in which the person died, and in many cases the grant of probate will not be issued until at least some of that tax has been paid (gov.uk, paying inheritance tax, as at August 2026, subject to change). That creates a well-known catch: the tax is due before the assets that would pay it can be reached.
Interest can add to the pressure. HMRC charges interest on inheritance tax paid late, currently at 7.75% a year from 9 January 2026 (gov.uk, inheritance tax thresholds and interest rates, as at August 2026, subject to change). Beyond tax, executors may need to keep an empty property insured and maintained, settle a funeral account, or meet the probate application fee. Beneficiaries, separately, sometimes want an advance because a full estate administration commonly runs to many months from death to final distribution.
Types of probate finance
The label "probate loan" covers a few different arrangements, and they are not interchangeable. The table below sets out the main ones.
| Type | Who borrows | Typical purpose | How it is repaid |
|---|---|---|---|
| Executor's loan | The executor or administrator, on behalf of the estate | Inheritance tax, probate fees, property costs, other estate liabilities | From estate funds once probate is granted and assets are realised |
| Inheritance advance | An individual beneficiary | Early access to part of an expected inheritance | Deducted from that beneficiary's share when the estate is distributed |
| Probate or estate bridging loan | The estate, often secured on estate property | Larger sums, frequently to cover tax on a valuable property before sale | On sale of the property or from estate funds after the grant |
An inheritance advance is not always a loan in the strict sense. Some providers instead buy a portion of a beneficiary's entitlement for a fixed sum, so the beneficiary receives money now and assigns part of their future share. The commercial effect can be similar to interest, and the amount given up depends on the provider's terms.
What does a probate loan cost?
The cost of the borrowing itself, meaning interest, arrangement fees and any legal charges, is set by the individual lender and varies between providers, so a single headline figure is rarely meaningful. Reading the full terms, including how interest is charged and what happens if probate takes longer than expected, tends to matter more than any advertised rate. What can be stated with certainty are the fixed public costs an estate meets during probate, which sit alongside any loan.
| Cost | Amount (August 2026) | Notes |
|---|---|---|
| Probate application fee (estate over £5,000) | £526 | No fee where the estate is £5,000 or less |
| Extra copies of the grant, ordered with the application | £2 each | Useful for dealing with several asset holders at once |
| Extra copies ordered after applying | £16 each | |
| Interest on inheritance tax paid late | 7.75% a year | Runs from the due date until the tax is paid |
Sources: gov.uk, applying for probate fees and gov.uk, inheritance tax interest rates, as at August 2026, subject to change.
- Inheritance tax is generally due by the end of the sixth month after the month of death (gov.uk, subject to change).
- Late-paid inheritance tax carries interest at 7.75% a year from 9 January 2026 (gov.uk, subject to change).
- The probate application fee is £526 for an estate over £5,000, with no fee at or below £5,000 (gov.uk, subject to change).
- You will usually get the grant within 16 weeks of submitting the application, and often sooner (gov.uk, subject to change).
Alternatives worth weighing first
Borrowing is one option, not the only one, and some alternatives cost the estate little or nothing. The main ones are set out below. Which fits depends on the estate, and this is general information rather than a recommendation for any particular estate.
- The Direct Payment Scheme. Many banks, building societies and National Savings and Investments will transfer money straight from the deceased's accounts to HMRC to pay inheritance tax before the grant, using form IHT423 (gov.uk, paying from the deceased's bank account, as at August 2026, subject to change).
- Paying tax in instalments. Inheritance tax on some assets, such as land and property, can be paid in up to ten annual instalments, though interest may apply to the outstanding balance (gov.uk, yearly instalments, as at August 2026, subject to change).
- Releasing funds from the estate's own bank. Some institutions release money before probate to settle inheritance tax or funeral costs, at their discretion. Asking the asset holder directly can avoid borrowing altogether.
- Executors using their own funds. Where affordable, an executor may meet a cost personally and reclaim it from the estate later, though this is a personal choice and not always practical.
Whichever route is chosen, keeping clear records helps. If you are still working out whether a grant is needed at all, our guide to what probate is and when it is required covers the basics, and our inheritance tax guide explains the thresholds that decide whether tax is due. Where planning is being considered for the future rather than an estate already in administration, estate planning can address some of these pressures in advance, and our pricing page sets out how we work.
Scotland and Northern Ireland
This guide describes the law and process of England and Wales. Scotland uses confirmation rather than a grant of probate, and its court fees and procedure differ. Northern Ireland has a separate but broadly similar system to England and Wales. Anyone dealing with an estate in those nations should check the local rules, as the figures above apply to England and Wales.
Frequently asked questions
What is a probate loan?
A probate loan is short-term borrowing taken against a deceased person's estate before probate is granted and before the estate's assets can be released. It is typically used to pay inheritance tax, probate fees or property costs, or to give a beneficiary an advance on their share, and it is repaid from the estate once probate comes through.
Who repays a probate loan?
The estate repays it in most cases. An executor's loan is settled from estate funds after the grant is issued and assets are realised. An inheritance advance to a beneficiary is generally deducted from that person's share when the estate is distributed, so it comes out of what they were due to receive.
How much does a probate loan cost?
The interest and fees are set by the individual lender and vary, so there is no single figure. Separate from any loan, the estate still meets fixed public costs, including the £526 probate application fee for an estate over £5,000 (gov.uk, as at August 2026, subject to change) and interest at 7.75% a year on any inheritance tax paid late (gov.uk, as at August 2026, subject to change).
Do you need a probate loan to pay inheritance tax?
Not necessarily. The Direct Payment Scheme lets many banks and building societies pay inheritance tax to HMRC straight from the deceased's accounts before the grant, using form IHT423, and tax on some assets can be spread over up to ten annual instalments (gov.uk, as at August 2026, subject to change). These routes can remove or reduce the need to borrow.
How long does probate take in England and Wales?
You will usually get the grant of probate within 16 weeks of submitting the application, and straightforward digital applications are often quicker (gov.uk, as at August 2026, subject to change). Administering the whole estate to final distribution commonly takes longer, which is part of why some beneficiaries look at an advance.
Is a probate loan the same as an inheritance advance?
They overlap but are not identical. A probate or executor's loan is usually taken by the person administering the estate to cover its costs. An inheritance advance is taken by a single beneficiary against their own expected share, and some providers structure it as a purchase of part of that share rather than a conventional loan. The terms differ, so reading them closely matters.