What is an inheritance advance?
An inheritance advance is a way for heirs / beneficiaries to get money from a trust or an inheritance before it goes through the probate process. An investor will basically purchase the rights to the inheritance from the heirs / beneficiaries in exchange for immediate cash.
Why would I want an inheritance advance?
Depending on the complexity of the estate, the probate process typically takes 9 to 18 months (sometimes longer) to complete, which means that heirs cannot have access to assets of the estate. In some cases, the estate may have debt obligations to pay, which could fall on the burden of the heirs. An inheritance advance can help heirs with these obligations until the probate process is complete. Even if the estate does not have debt obligations, heirs may have their own pressing financial obligations and may need access to cash now.
How much does an inheritance advance cost?
Most funding companies do not charge any upfront fees to the heirs/beneficiaries. Funding companies make money on the difference between the value of the inheritance/trust and the amount that they pay the heirs for the inheritance advance.
How much money can you get from an inheritance advance?
The funding company will look at all applicable paperwork regarding the probate and the amount of potential inheritance. Based on this information their underwriting department will calculate a value to pay you in cash for the inheritance advance. This value is a percentage of the projected inheritance.
Who can help you get an inheritance advance?
There are many financial services companies that can help you with an inheritance advance. These funding firms have access to large amounts of cash, and can afford to advance you money now and wait for the probate process to settle before they see a return on the inheritance advance.