IHT Bill Probate Finance for Estate Share Portfolio

The Scenario

Our client was a law firm partner and professional executor responsible for managing an estate composed entirely of stocks and shares.

This is unusual: property is normally the most valuable asset within an estate, especially for one of this size (a multimillion-pound portfolio).

Due to some delays in the administration process, the estate was also facing a significant inheritance tax bill from HMRC - £1.3m - for which it didn’t have the cash reserves to front.

The Solution

Our partner specialist probate funder was able to provide an Inheritance Tax loan of £1.3 million, secured against the investment portfolio, allowing the executor to pay the tax directly to HMRC without having to liquidate the shares upfront.

While shareholdings are quick and easy to value and fast to liquidate, making them attractive security for a loan, their value is also highly volatile – even for companies on the FTSE 100. This makes them unattractive as security, and many probate lenders would simply not take the risk, instead prioritising standard, property-backed lending opportunities.

They also had no Early Repayment Penalties, and as the shares could be sold quickly upon probate being granted which saved them considerably on interest and charges.

This case highlights the effectiveness of tailored financial solutions in navigating complex estate management challenges, and the value of working with specialised funding partners.