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.
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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.
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The estate of my mother has been in the works for 2 years and is near closing. The family home just closed escrow and we are waiting for a court date of the accounting of all monies. My lawyer says approx. 60 days until the funds are disbursed to us three heirs. I am in a tight financial situation at the moment and would like a to know my best alternative to get advanced on my inheritance which is split evenly among us. About $250,000. Each. Since we have such a short time left what is my best option on getting a small advance like $10,000. Or $20,000.
Hi Francine,
Thanks for getting in touch with finder. I hope all is well with you. :)
As what our page mentioned, one of your options includes inheritance funding. You may want to review the information on this page before you look lenders who provide inheritance funding. However, please note that inheritance funding can come with steep fees that range from 10% to 40% of your inheritance value.
If in case this isn’t something that you don’t want to use, you may want to seek other alternative options like getting a personal loan from other providers. On this page, you will also find a table above that compares other lenders. Once you found the right one for you, click on the “Go to site” green button to be redirected to their website.
Please review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua