Inheritance funding

Inheritance funding can help you access inheritance funds before the probate court process is over, which can take six months to several years depending on the complexity of the estate. But this type of financing is designed for emergencies and can get expensive — you could end up paying as much as 50% of your inheritance in fees.

What is inheritance funding and how does it work?

Inheritance funding is a type of short-term financing that gives you access to the value of the funds or assets you’ve inherited before the deceased’s probate case is closed.

There are many terms used to describe inheritance funding: inheritance loans, inheritance advances, estate loans, probate loans or probate advances. But when you boil it down, there are really only two types of inheritance funding:

• An inheritance advance, an advance on your inheritance amount.
• An estate loan, a secured loan that uses your inheritance as collateral.

Neither of these inheritance funding methods consider your credit score when you apply. You won’t find inheritance financing at a traditional lender, like a bank or credit union, either.

Inheritance advance

Also called probate advances or inheritance cash advances, these are the most common types of inheritance financing.

It’s essentially a cash advance on your expected inheritance amount, based on what you may inherit. It’s similar to a payday loan in that way. Because you’re not actually taking out a loan, you don’t need to worry about repayments or needing strong credit to qualify.

And since it isn’t a loan, there’s no interest. Instead of interest charges, you normally pay a flat fee, which can be quite hefty — around 10% to 50% of the inheritance value.

Estate loans

Sometimes called inheritance loans or probate loans, estate loans allow you to borrow against real estate assets that you don’t yet have access to — it’s like a home equity loan. You receive your funds and repay it plus interest and fees, with your estate considered collateral for the loan.

An inheritance loan or estate loan may come with an interest rate around 8% to 10% or more, and lenders typically lend up to 65% to 70% of the property’s value.

However, not all “estate loans” work this way — sometimes lenders use this term to refer to an advance. Make sure you understand how your lender works before applying.

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Find an inheritance funding company by comparing APR, minimum credit score and loan amount. Select the Go to site button for more information about a particular lender.

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Name	Product	Min. Advance Amount	Max. Advance Amount	Requirements
Inheritance Funding probate advances Not rated yet Inheritance Funding probate advances Not rated yet		$5,000	$350,000	$10,000+ inheritance, case currently in probate court or about to be opened	Get up to 50% of your inheritance — without paying any interest.	Go to site More Info	Compare	loading Fetching your data...
My Inheritance Cash probate advances Not rated yet My Inheritance Cash probate advances Not rated yet		$3,000	$100,000	Qualifying inheritance of $15,000+, live in eligible state, US citizen or permanent resident	Interest-free cash advances of up to 20% of your inheritance.	Go to site More Info	Compare	loading Fetching your data...

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Where to get an inheritance advance or estate loan

You can either go with an inheritance finance company or with a hard-money lender. However, be aware that either option can come with high fees or high interest rates.

Inheritance advance companies

The most common way to get inheritance financing is through an inheritance advance company. These companies buy your inheritance directly from you in exchange for a fee.

They don’t consider your credit history when you apply, and you can get inheritance upfront, within a few days of applying. But these companies can be expensive, charging fees equivalent to those you’ll find with a high-interest loan.

Hard money lenders

Hard money lenders are short-term lenders that provide loans backed by property. Like inheritance advance companies, hard money lenders don’t consider your credit score.

This option, too, can be expensive, with APRs often higher than other subprime loans. If you’re unable to repay your loan, your lender seizes your estate assets and sells it.

What you need to apply for an inheritance advance

Applying for inheritance financing is more involved than other types of loans. There’s a lot you need to do before you can even start looking at lenders. And you’ll need to gather some documentation, such as:

• A copy of the decedent’s death certificate.
• A copy of the decedent’s will.
• Legal documents involving the probate.
• Documentation stating who the estate’s administrator is.
• Certification from the administrator stating how much you stand to inherit as a beneficiary.
• Your valid ID.

Steps to apply for an inheritance advance

Here are the typical steps in getting advance inheritance funding:

1. Check with a lawyer. Inheritances and trusts are complicated, often requiring a law degree to fully understand. Talk to a lawyer specializing in these cases to make sure that you’re legally allowed to transfer your inheritance or take out funding against it.
2. Consult a financial specialist. Tax laws surrounding inheritance are difficult to understand. Make sure the type of inheritance financing you’re looking for is financially worth it.
3. Understand the value of your inheritance. Many lenders require that you stand to inherit at least $15,000 to qualify for an advance or estate loan. Make sure your inheritance meets eligibility requirements.
4. Notify the estate’s administrator or executor. In charge of overseeing the execution of a will, an executor is assigned their position in the will, while an administrator is assigned by court. Inform this person before you apply so that they can take steps to prepare for your advance or loan.
5. Compare lenders. Look at factors like fees, interest rates and loan terms. Also read reviews on sites like the Better Business Bureau (BBB) or Trustpilot to get a sense of what the typical experience is like with this lender.
6. Complete the application. If you’re applying online, these applications won’t take more than a few minutes. Each lender will have a different set of questions and document requirements.
7. Read the terms of your advance loan. Look for any hidden fees or other unfavorable terms before signing your advance or loan documents. Don’t be afraid to ask questions if you’re unsure of anything.
8. Sign your documents and receive your funds. You’ll typically receive your funds within a few days of submitting your advance or loan documents. Most banks directly deposit it into your account.

How long does it take to get funded and what’s next?

Getting an estate settled can take anywhere from six months to years — but immediate inheritance advances or probate loans could be funded within a few days or within five business days, depending on the lender.

What happens next depends on the type of financing you got. If you got an inheritance advance, there’s little else you need to do if the rights to the inheritance have already been transferred over.

With an estate loan, however, you make monthly repayments until your loan’s principal and interest are paid off. Keep an eye on your loan’s balance and try not to miss any repayments — these loans tend to come with high interest rates that can add up quickly.

Pros and cons of getting an inheritance advance or probate loan

There are several legitimate reasons for wanting to get an advance or loan backed by your inheritance, but it has its drawbacks.

Alternatives to inheritance loans and advances

Depending on your needs, you might find alternatives that are a lot less expensive than inheritance financing.

• Family allowance. Sometimes the estate administrator is required to cover living expenses of people who depended on the deceased financially. If this is you, make sure you aren’t entitled to an allowance before applying for an inheritance advance or loan.
• Advance from the estate. You might be able to get your advance directly from the source — just ask the estate’s administrator first. Be aware that you might need to return your advance if the estate faces unexpected expenses.
• Make a claim. Did the deceased owe you money or other assets? Consult an inheritance lawyer to see if you can file a claim on the estate.
• Personal loans. If you qualify for a personal loan, you might end up with more money in the end than with an inheritance advance. Personal loans won’t eat up your inheritance’s value and you may get a lower interest rate on the personal loan, depending on your credit score.
• Home equity borrowing. If you own a home with at least 15% to 20% equity, you could take on a home equity loan or home equity line of credit (HELOC). These loans tend to come with lower interest rates than unsecured personal loans as well.

Bottom line

Inheritance financing is an expensive option worth treating as a last resort. Before you apply for an inheritance loan, make sure you understand your legal obligations and what your assets are really worth — after taxes as well. If you can afford to wait, then that may be the best route. If the probate ends swifty, you may have paid extra to get those funds instead of just waiting a few extra weeks or months.

You might want to look into other financing options like personal loans to find the best choice for your circumstances.