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Introducing Estate Advance Financing: Easing the financial burden for executors

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 Advance Financing.

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.

Additional considerations

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 | trust@concentra.ca

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