How does a probate advance work? It is a cash advance on your expected inheritance which can be received within a few business days, rather than waiting months or years for the probate process to conclude.
When you are the beneficiary of a probate estate, you can expect that the probate process to take several months or even years to conclude, during which time your inheritance is inaccessible. However, certain financial institutions will allow you to take an inheritance advance. Unlike a traditional loan, this is considered a purchase of your inheritance rights.
When applying for a probate advance, you can expect that the funding company will verify your identity and eligibility. They will not do a credit check or look at your credit score, but will need to confirm your identity with the executor of the estate and/or the estate attorney. Once approved, you will receive a lump sum payment, minus the upfront flat fee from the funding company. Because this is not an inheritance loan, there are no monthly payments, no personal liability, and repayment is not necessary. It should be noted that receiving advance amounts from an inheritance can be costly, because the inheritance funding company takes a cut of the inheritance. Probate advances can be done for the full amount of the inheritance or just a portion of your inheritance. When the probate court determines that the probate process is complete, the executor will directly pay the funding company, and you will receive the remainder of your inheritance, if any.
To avoid probate, it is recommended to visit an estate planning and probate attorney to create a trust and other important documents. When assets are held in a trust instead of a decedent’s name, loved ones can access the assets much more quickly when a person dies, avoiding probate and negating the need for a probate cash advance loan.