Estate matter funding

Estates Funding is a service from JustFund that provides executors with access to funds secured against estate assets. This allows you to pay necessary costs during estate administration without using your own personal money or asking professionals (such as your lawyer) to wait for the estate’s assets to become liquid.

The executor or administrator of the estate, or their lawyer, can apply for the loan. Beneficiaries, in some circumstances, may also be able to apply.

The loan can be used for costs connected to probate and administration, such as funeral expenses, legal fees, valuations and court filing fees. It can also be used for maintenance of the estate such as property insurance or repairs, and even for legal fees incurred by executors to defend litigation claims. With beneficiary consent, it can also fund renovations, and sale preparations, or even early inheritance distributions.

The amount we lend depends on your specific circumstances and that of the estate, including the value of its assets and the costs involved in administration. We assess each case individually to ensure the funding is tailored and appropriate. Contact us to discuss how we can best assist you.

Yes. The loan can cover an executor’s legal costs in defending or mediating a family provision claim. It may, in some circumstances, be used by a plaintiff to run such a claim, but those are for limited circumstances – if this is you, please contact us to discuss further.

Yes. There are two ways this could happen. One option is for the executor to use part of the loan as an early release of your inheritance. The amount, plus interest, is later deducted from your final share of the distribution. The other option is that as beneficiary you apply individually for a loan against your pending inheritance.

No. There are no out-of-pocket monthly repayments. All interest and fees are added to the loan balance and repaid in full from the estate as part of the administration and distribution process.

Helpfully, you will not pay any fees or interest out-of-pocket until the estate’s assets are distributed. Any applicable fees and charges are added to your account and repaid as a lump sum upon settlement of your family law property matter.

Executor loans are subject to the following:

Interest – interest is calculated on the debit balance of your account. This means that interest is charged only on what you actually use from the date of each draw down – you do not pay interest on the unused credit on your account. The current variable interest rate for Executor loans starts from 9.85%

Assessment & Administration Fee – this covers our costs of conducting a full merits assessment of your application based on your unique circumstances. It depends on the complexity of your matter and size of your line of credit, and typically starts from $560 for credit lines up to $15,000.

Invoice Processing Fee – this covers the cost of processing invoice payments on your behalf and reviewing updates on the status of your legal matter. The Invoice Processing Fee is 3.75% of each amount drawn on your account.

A caveat fee may also apply depending on your circumstances. We provide a detailed breakdown of fees and charges to all applicants.

For pricing for beneficiary loans, please contact us.

Once an application is submitted, and the estate’s solvency is assessed, loans can be approved within a few days and invoices paid within 24 hours of approval.

The loan is repaid directly from the estate’s assets along with all other liabilities that are paid
as part of the administration of the estate. Funds will flow from the estate assets via your
lawyer’s trust account, and your law firm will ensure repayment of the loan on your behalf.

Not necessarily. The use of the loan is for expenses and costs that need to be incurred
regardless of whether the executor takes out the loan or not, so any additional cost to the estate
would be limited to just the interest and fees. However, in many cases, timely access to funds
can actually preserve or increase the estate’s value by preventing urgent losses or for improving
property to increase the sale price and the final share to beneficiaries.

No. The loan is only for estate-related expenses. It cannot be used for an executor’s private debts or unrelated costs.

If the estate cannot cover its debts, funding may not be approved. JustFund assesses
solvency upfront to ensure the loan is responsible and repayable from estate assets.

Beneficiaries benefit from faster distribution, preservation of sentimental items and property,
potential increases in inheritance value through repairs or marketing costs prior to sale, and less
financial pressure during the process for all involved.

No it won’t – we may perform a soft credit check only which shows as a nil balance on your
report and does not impact on your score.