Probate takes longer than most people expect. According to a 2024 study by Trust & Will, the average probate timeline in the US is 20 months — yet only 2% of Americans correctly guessed that figure. For heirs who need money sooner, an inheritance loan can help bridge that gap. But it comes at a cost, and it’s worth understanding exactly what you’re getting into before you sign anything.
An inheritance loan is a secured loan backed by your expected inheritance. A hard money lender — typically a private lender or investor group, since traditional banks and credit unions generally don’t offer these — evaluates your inheritance and extends you a loan based on what you’re likely to receive.
Once the lender verifies your inheritance amount (usually by contacting the estate executor), they propose loan terms. If you accept, you receive a lump sum and begin making monthly payments. When your inheritance is finally distributed, you can typically use it to pay off the remaining balance.
Key things to know:
Inheritance loans typically carry higher interest rates than traditional personal loans, because the collateral (a future inheritance) is considered riskier than a fixed asset like a home.
According to Trust & Will, interest rates on probate loans generally fall between 7% and 15%, though they can go higher depending on your circumstances. Hard money lenders specializing in real estate-secured estate loans (where the inherited property is used as collateral) more commonly charge 8% to 10% annually, plus origination fees typically ranging from 2 to 4 points (1 point = 1% of the loan amount).
Additional fees may include processing charges, document fees, underwriting fees, title insurance, notary fees and recording fees. Always ask for a full fee disclosure before signing.
Use the repayment calculator below to estimate your monthly payments based on loan amount, term, and interest rate.
|
Your loan
|
|---|
| Loan amount |
|
$
|
| Loan terms (in years) |
|
|
| Interest rate |
|
%
|
or
Compare more lenders| Principal | $ |
|---|---|
| Interest | $ |
| Total Cost | $ |
An inheritance loan makes the most sense if:
You may want to skip the loan if your need isn’t urgent, if cheaper alternatives are available to you, or if the estate is complex enough that you’re not confident about the final payout.
Beyond the standard loan requirements (proof of income and identity, employment verification), inheritance lenders want estate-specific documentation:
The two providers listed below offer inheritance advances (not loans), meaning no monthly payments and no interest — just a flat fee deducted from your share of the estate at distribution.
We currently don't have that product, but here are others to consider:
How we picked theseThe Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
These terms get used interchangeably online, but they’re not the same thing.
Inheritance loan (also called a probate loan or estate loan): A traditional-style loan where your inheritance is used as collateral. You borrow money, make monthly payments with interest and repay the lender once the estate distributes your share.
Inheritance advance (also called a probate advance or estate advance): Not a loan at all. You sell a portion of your future inheritance to a funding company in exchange for cash now. There are no monthly payments — the company gets repaid directly from the estate when probate closes.
Both solve the same problem (getting you money before probate ends), but they work very differently and carry different risks and costs.
Must read: Learn more about inheritance advances
| Inheritance loan | Inheritance advance | |
|---|---|---|
| What it is | A loan using inheritance as collateral | A sale of a portion of your inheritance |
| Monthly payments | Yes | No |
| Interest | Yes (typically 7–15%) | No — flat fee instead |
| Credit check | Usually | No |
| Risk if estate shrinks | You still owe the loan | Risk falls on the advance company |
| Typical cost | Interest + origination fees | 10–50% flat fee on advance amount |
| Speed | A few weeks | Often same day to a few days |
Inheritance advances are generally not considered taxable income. The federal estate tax exemption for 2026 is $15 million per individual, so the vast majority of estates will owe no federal estate tax.
A handful of states — currently Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania — do levy state inheritance taxes. Advance companies typically factor these into their calculations. That said, always consult a tax professional for advice specific to your situation.
Because this industry is lightly regulated, it’s important to vet any company carefully before signing. Watch out for:
Checking a company’s rating with the Better Business Bureau (BBB) and reading verified customer reviews is a reasonable starting point.
Waiting up to two years (or longer) for an estate to clear probate can put real financial pressure on heirs. Inheritance loans and advances both solve that problem, but in different ways and at very different costs.
If you’re considering an inheritance loan, shop around, get full fee disclosures in writing and compare it carefully against personal loans or home equity options first.
If you’re a retiree and looking for a loan, there are lenders who may approve your application. Learn more about the loan types available to retired people.
The passing of a loved one is a tough time. Learn if a funeral loan could help ease the financial burden so you can focus on planning a deserved farewell.
For single moms juggling income, expenses and emergencies on their own, personal loans can offer short-term relief — but they come with tradeoffs.
Emergency payday loans can give you quick and easy access to funds. Compare your options and find a lender to help see you through.
Wondering whether to choose a 3-year or 5-year personal loan to consolidate your credit card debt? We compare both terms side by side to help you decide.
A guide to hardship loans, including what they are, who should use them and what to be aware of when considering getting one.
Considering a loan from Reprise Financial or OneMain Financial? Check out our side-by-side comparison first.
How to get first-time personal loans with no credit history, ways to improve your odds of qualifying and alternative loan options.
Cash advance apps and personal loan providers that offer small loans.
Personal loans offer quick cash for Home Depot trips and contractors, but larger renovations may require a different type of loan.
My mother passed and myself, my sister and my brother are expecting a modest inheritance from her death. She had no will and no outstanding debts or creditors. The only thing she had was her house she owned outright. It is currently I probate and I just am going through a divorce and am without a place to live while I search for a rental with my section 9 voucher. I’m disabled and am currently without a home. I was thinking of an inheritance advance yes or no and where should I go? Thank you
Hi Mary,
Thank you for reaching out to Finder.
You may need to speak to your siblings to allow you to stay in the house until the probate is done but this is with them agreeing to it. If you are looking for an inheritance advance, you might want to seek out legal and financial advice to make sure you fully understand what you’re getting yourself into. Hope this helps!
Cheers,
Reggie
What would happen if I got an advance on my inheritance and it was all in my mother’s estate? However, when I went to court and the judge said the house was never my mom’s because my father never put her on the deed. So now the house is in my dad’s name. Do I have to still pay it back?
Hi Mandy,
Thanks for getting in touch with Finder. I hope all is well with you. :)
Before a lender approves your loan application, you would need to present relevant and important documents to support your claim that you have an inheritance. The lender would know during your application if you legitimately have an inheritance. For this reason, if in case the lender finds out that you don’t have any inheritance, then your loan application would be rejected.
If in case you were still approved and then in the future, you didn’t receive any inheritance, you would still need to pay back the lender by other means.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
My parents want to sell me their house (which is paid off) Is there a type of loan(inheriting loan)out there that would be cheaper than getting a standard mortgage bank loan?
Hi Lisa,
Thanks for getting in touch! As it says on our page, Inheritance funding is a short-term form of financing that grants you access to the value of the funds or assets you’ve inherited quickly. There’s two types of inheritance funding: an advance on your inheritance and a loan using your inheritance as collateral. Neither consider your credit when you apply, and you can’t find these options with a traditional lender. First you need to check your credit score, then go back to this page to choose the credit score and the state on the table provided. It will show all the lenders for your state so you can go ahead and get started on an inheritance loan.As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the product disclosure statement of the product and contact the lender should you need any clarifications about the loan. You may also seek help from a mortgage broker if you need further assistance as they will be able to take your circumstances into account.
Hope this helps! Feel free to reach out, we’re here!
Best,
Nikki
Does my inheritance have to be in probate to receive a loan? My trust fund is with the Bank of America US trust.
Hello Jeff,
Thank you for your comment.
Probate can be a long, drawn-out process, especially if the estate has to file a federal income tax return and wait for a return letter from the Internal Revenue Service approving the close of the estate. You may be able to get an advance on your inheritance in the form of an inheritance loan if you can’t wait
that long to access your inheritance.
When you take out a loan against your inheritance, lenders do require documentation as proof of your inheritance. This may include a copy of the will, an official death certificate, copies of the letters of administration issued by the probate court officially opening the probate proceeding and appointing the personal representative, a certification of the amount of your inheritance from the personnel administrator and your identification.
You might want to seek out legal and financial advice to make sure you fully understand what you’re getting yourself into. I hope this helps.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
I would like to know can an inheritance lender provide you with the total value of an inheritance after taxes if required by state. Basically can they let me know the exact amount I stand to inherit before issuing the loan
Hi Bobby,
Thanks for getting in touch with finder. I hope all is well with you. :)
Generally, it would be you who would give the figure of how much you will be inheriting. Of course, the lender can also give you advice or help you figure out your total inheritance after taxes. To obtain an inheritance loan, you would need to provide a lot of documents showing the lender that you truly has an incoming inheritance. Thus, it would be helpful if you already know the exact amount of your inheritance.
It is also advisable that you speak to experts as well as involve your friends and family to make sure you’re making the right decision for your situation.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua