Introducing Estate Advance Financing:
Easing the financial burden for executors
October 29, 2020
With rare exceptions, solely-owned
real estate requires probate to transfer it from the estate to the
beneficiaries. If you are an executor of an estate that is asset rich but cash
poor, you may have challenges when it comes to paying the required probate fees.
Fortunately, Concentra has a new lending solution for executors facing this
situation: Estate Advance Financing.
The Estate Advance Financing advantage
When an estate has a valuable real estate asset, the probate fees can be
substantial. If the estate has insufficient cash to cover the probate fees, the
executor faces the dilemma of having to pay the probate fees personally. As an
example, in 2020, the probate fees for a $2,000,000 principal residence in
Vancouver or on Vancouver Island are $27,450 while the probate fees for a
$2,000,000 property in the Greater Toronto Area are $29,250. We have seen
estates stall or not be administered because the executor is not willing to pay
the probate fees. In some jurisdictions, there can be lengthy delays in courts
granting probate, which creates an excessive financial burden for an executor to
undertake. This problem inspired Concentra to create a solution: Estate
How does it work?
Where Concentra Trust is the named executor, or the named executor renounces
in favour of Concentra Trust as executor, the estate can apply to Concentra Bank
for a one-time Estate Advance Financing loan, ranging from $10,000 to $100,000,
to cover the probate fees.
Where is the Estate Advance Financing available?
The Estate Advance Financing loan is currently being offered in the Greater
Toronto Area, the Greater Vancouver Area and Vancouver Island.
Fees and expenses
The loan is repaid when Concentra receives the sale proceeds of the real
estate. The estate pays all legal costs, application fees and disbursements
associated with the loan.
The loan is subject to the nature of the beneficiaries’ entitlement, the
relationship of the beneficiaries to the deceased, and the type of real estate.
Consider connecting with an estate and trust advisor at Concentra Trust to
answer your questions about Estate Advance Financing and how estates with low
cash and high real property values will benefit.
Did you miss our most recent article? Click
here to read When you die, will your family know what to do?
Concentra Trust, a national trust company, has been serving clients,
corporations and communities for more than 65 years with tailored estate and
trust solutions designed to preserve and transition wealth to future
generations. We are well versed in navigating the intricacies of estate planning
and administration and our experts have the skill to support all aspects of the
process. Given our passion for trust governance, our unbiased advice and
guidance, and our inclusive leadership culture and co-operative values, we
provide exceptional client service.
For more information, contact:
1.800.788.6311 | email@example.com