Inheritance Advance Companies: Navigating Your Options for Early Inheritance Access

Inheritance advances offer immediate financial relief for beneficiaries awaiting the distribution of their inheritance. These funds provide a solution to cash flow issues during the often lengthy probate process.

Inheritance Advance Basics

An inheritance advance allows heirs to receive part of their inheritance quickly, without waiting for the completion of the probate process. They are not loans; rather, they are a purchase of a portion of the beneficiary’s future inheritance by the advance company. Here’s what beneficiaries need to understand:

  • Process: Beneficiaries sell a portion of their expected inheritance to the advance company in exchange for a lump-sum payment upfront.
  • Cost: The company charges a fee for this service, which is typically deducted from the cash advance provided.
  • Repayment: The advance company is repaid directly from the estate once the probate process is complete, not by the heir.

Crucial Point: The heir receives less than the total amount they are due to inherit because of the fees and the nature of the cash advance transaction. However, this trade-off is often necessary for immediate financial needs.

Types of Inheritance Advances

Inheritance advances can come in various forms, with differences mainly based on the terms and the size of the advance. Common types include:

  • Probate Cash Advance: This is a sum of money paid in advance, specifically designed for heirs expecting an inheritance that is tied up in probate.
  • Advance on Your Inheritance: Comparable to a probate cash advance, but it may refer to financial arrangements outside the traditional probate system.


  • Terms: The cost and repayment terms can vary greatly between companies and even between individual cases.
  • Amount: The advance amount can range anywhere from small sums to substantial portions of the expected inheritance.

Beneficiaries should carefully consider the terms offered by inheritance funding companies, as the fees and the portion of the inheritance sold can significantly impact the remainder of the inheritance once probate is settled.

Eligibility and Requirements for an Inheritance Advance

To qualify for an inheritance advance, beneficiaries must navigate through certain eligibility prerequisites and satisfy specific documents and conditions enforced by inheritance advance companies during the probate process.

Probate Process and Certification

Probate court certification is crucial for a beneficiary to be considered eligible for an advance on their inheritance. The probate process involves the legal verification of a will and the distribution of assets as per the deceased’s wishes. Only beneficiaries named in a will or trust and have entered the probate process can apply for an advance. They must provide documentation from probate court confirming their status as a legitimate heir and that the estate is currently undergoing the legal process.

Personal Representative and Legal Standing

The personal representative of an estate—often appointed during a probate hearing—plays a significant role in the application for an inheritance advance. They are responsible for overseeing the estate’s administration through the legal process. Beneficiaries must demonstrate that they have a legal standing, typically validated by the probate court, to request an advance. Inheritance advance companies require proof that there is a personal representative assigned and that the estate possesses sufficient assets to cover the amount requested, along with any associated fees and interest.

Probate Advance Company- Financial Considerations When Seeking a Loan on an Inheritance

Inheritance advance companies offer a financial service to heirs awaiting the distribution of assets from a deceased individual’s estate. These advances can significantly impact the estate’s financial landscape, particularly in terms of costs incurred by the heirs who receive the advance.

Interest Rates and Fees

Interest Rates: Inheritance advance companies typically do not charge traditional interest rates, as the funds provided are not considered loans but rather a purchase of a portion of the heir’s interest in the estate. The heir essentially sells a part of their future inheritance in exchange for immediate cash.


  • Flat Fee: Some companies charge a flat fee for their services, which can range from a small percentage of the advanced amount, depending on the company.
  • Hidden Fees: Heirs should scrutinize the agreement to ensure there are no hidden fees that might increase costs unexpectedly.

Companies may list their pricing structure explicitly, but it is crucial for heirs to thoroughly review contracts before agreeing to any advances.

Impact on Other Heirs

  • Inheritance Tax: Heirs receiving an advance may still be responsible for paying inheritance tax on the full value of their inherited assets, not just the amount they receive upfront.
  • Payment of Tax: The heir who receives an advance usually remains liable for any taxes associated with their portion of the inheritance.
  • Monthly Payments: While typically there are no monthly payments for heirs to make (since it’s not a loan), the cost of the advance could reduce the overall value of the estate, which may affect other heirs.

The actions of one heir receiving an advance do not directly impact the financial responsibilities of other heirs in the estate, but it can indirectly influence the timing and value of the assets they stand to inherit.

Process of Securing an Inheritance Advance

When an individual stands to inherit from an estate in probate, they may seek financial alternatives to access funds sooner. Inheritance advances provide such an option, with a process involving probate lender evaluation and stipulated repayment terms.

Probate Lender Evaluation

The initial step for securing an inheritance advance is the probate lender evaluation. A probate lender assesses the amount the beneficiary is due to receive and determines the viable sum for an advance. This process includes:

  • Verification: Evaluating if the applicant is a legitimate heir of the estate.
  • Estate Assessment: Examining the estate’s value to determine how much funding can be feasibly advanced.
  • Risk Analysis: The probate lender considers the complexity and duration of the probate process as factors impacting the potential risk.

Probate lenders typically look to provide advances ranging from 15% to 30% of the heir’s expected inheritance.

Receiving Funds and Repayment Terms

Upon successfully passing the lender’s evaluation, heirs may receive funds. This liquidity is often a percentage of the total inheritance and comes with specific repayment terms. Key aspects of this stage include:

  • Cash Advance: An agreed sum is provided to the heir as a lump sum, which is a non-interest bearing cash advance.
  • Repayment Terms: Inheritance advances are typically settled directly from the inheritance proceeds once the probate process concludes, negating the need for monthly repayments.
  • Early Repayment: Some lenders may accommodate early repayment, although this is not a common practice due to the nature of the advance.

It is crucial for inheritors to review all terms with the probate lender to ensure clear understanding of the repayment conditions.

Choosing the Right Inheritance Advance Company

When an individual receives an inheritance, it can take time before they can access the funds due to the lengthy probate process. Inheritance advance companies provide an option to access funds swiftly, but choosing the right one requires careful consideration.

Comparing Companies and Offers

Criteria for Comparison

  • Reputation: Research each company’s track record through reviews and customer testimonials.
  • Fees: Compare the costs, including any hidden fees and the total amount you will receive after the advance is provided.
  • Speed of Transaction: Evaluate how quickly companies can process your advance.
  • Customer Service: Look for companies that offer transparent and responsive support.

Method of Comparison
To compare offers effectively, one can create a table like the following:

CompanyFeesResponse TimeCustomer Reviews
Company AX% of inheritanceWithin 24 hours4.5/5 Stars
Company BFixed fee2-3 Days4/5 Stars

Note: Some companies may offer substantial rebates if the probate process concludes sooner than expected.

Avoiding Common Pitfalls

Pitfalls to Avoid

  • High-Pressure Sales Tactics: Steer clear of companies that seem overly aggressive in their sales approach.
  • Lack of Transparency: Avoid companies that do not provide clear information about their fees and terms.
  • Inadequate Contract Understanding: Ensure you fully understand the contract terms before agreeing to any advance.
  • Ignoring Alternatives: Consider other financial options besides inheritance advances to ensure you make an informed decision.

Through detailed comparison and awareness of potential pitfalls, individuals can choose an inheritance advance company that best meets their needs without compromising on cost or quality.

Legal and Tax Considerations

When engaging with inheritance advance companies, it’s crucial to consult an estate attorney to ensure compliance with legal requirements. The estate attorney can oversee the probate process, where legal fees may accrue. Probate tax is another consideration; this tax varies depending on state law and the size of the estate. Estate loans and estate advances should be carefully examined under these laws.

Individuals considering an inheritance advance to cover expenses such as a mortgage payment or other expenses must understand the tax implications. Unlike a loan, an inheritance advance is typically a purchase of a future interest in the estate, and thus may not be subject to immediate taxation. However, tax laws are complex, and regulations change, affecting the taxation of inherited assets.

Here is a brief overview of key points:

  • Estate Attorney Involvement

    • Advises on legal and tax implications
    • Assists with probate court proceedings
  • Legal Fees and Probate Tax

    • Vary by state and estate size
    • Impact the net inheritance value
  • Estate Advances and Loans

    • May provide immediate funds
    • Should be scrutinized for compliance with estate laws
  • Tax Implications

    • Inheritance advances are not taxed like a traditional loan
    • Laws governing inheritance and gift tax must be reviewed

Beneficiaries should review their financial decisions with professional advisors to ensure their actions are in the best financial and legal interests concerning their inheritance.

Frequently Asked Questions

Inheritance Advance Companies provide beneficiaries the option to receive funds promptly, based on their expected inheritance. Here are some commonly asked questions about the services they offer.

How quickly can one receive an inheritance advance?

Once approved, beneficiaries can often receive an inheritance advance within a few days. The exact timeframe depends on the company but is typically much shorter than waiting for the completion of the probate process.

What are the risks associated with inheritance advances?

The main risk is that if the inheritance is less than the advance received, the beneficiary might have to cover the difference. Additionally, there may be high fees or interest rates involved, creating a financial burden.

Are there reputable banks that offer loans against inheritance?

Yes, some reputable banks and financial institutions offer loans or advances against inheritance, but they often have strict eligibility criteria and terms that should be carefully reviewed.

Can an heir obtain an advance on their inheritance before the decedent’s passing?

No, heirs cannot obtain an inheritance advance before the decedent’s death because the estate and inheritable assets are not yet available or quantified.

What criteria do companies use to determine eligibility for an inheritance advance?

Eligibility typically depends on the value of the inheritance and the status of probate. Some companies require a minimum inheritance amount and that the estate is already in probate.

How do inheritance advance fees and interest rates compare to traditional loans?

Inheritance advance fees and interest rates can be higher than traditional loans and vary from company to company. These costs should be considered when deciding if an inheritance advance is financially sensible.