Inheritance Advance: The Pros and Cons

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Nina Grayson
Realtor®, Certified Probate Real Estate Specialist, Healthy Cook, Meditator, Investor, and All-Around Fun to Hang Out With...
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When the Personal Representative or other heirs have personal financial needs and the Probate will not be fully dispositioned for some time, they can consider an Inheritance Advance.  An Inheritance Advance is  similar to a cash advance, where the estimated share of an heir’s inheritance is what the advanced is made upon. Depending on the size of the advance, it can cost as little as $0.25 on the dollar or as much as $0.80 on the dollar.  The Probate Solution is partnered with the top Inheritance Advance companies in the nation and offers great rates.  However, there are both pros and cons of an Inheritance Advance.  So, before you Book a Call to discuss your probate and interest in an Inheritance Advance, please read below so you are informed.

The Pros of an Inheritance Advance

One of the greatest benefits of an Inheritance Advance is the immediate access to cash funds.  No matter the need, great or small, anyone would welcome a sizeable cash-injection into their personal finances.  The cash is yours to use as you see fit, with no conditions whatsoever. 

Another benefit is you are not taking out credit or a loan, so you don’t have to pay it back.  The cost of the advance is assessed as a fee based on the amount of the advance.  The total advance plus the fee are paid directly to the advance company once the probate has the final accounting for disposition to all interested parties.

The Cons of an Inheritance Advance

Any form of a cash advance comes with its share of disadvantages as well.  The cost of the advance can be significant.  The lower the advance, the higher rate the cost and the higher the advance, the lower the rate of the cost. But whether your advance is low or high, the overall cost of the advance can substantially reduce your total proceeds. 

Another disadvantage of an Inheritance Advance is the level of risk for both the heir and the advance company.  The advance company is taking a great risk when advancing funds on an inheritance.  Probate cases can last for more than two years, and some can last even longer.  And the value of the estate could potentially decrease during that time.  To abate some of the risk, most advance companies will do both a credit and background check.  They need to verify your identity and that you are named as a beneficiary of the estate.  Even though you are not taking out credit, the advance company looks at your credit as an additional security measure.

Should you get an Inheritance Advance?

It depends. Most advance companies have a minimum amount of expected proceeds that must be met before they can consider giving you an advance.  And you may not want to incur the fee it will cost, which could substantially reduce your proceeds. However, if you need the cash now and cannot wait for the estate to finalize disposition, which could be  a year or more from now, then an Inheritance Advance may be right for you.  

If you would like to obtain an Inheritance Advance, I’m happy to discuss it with you to help you make the decision, and give you a referral to one of the best advance companies in the nation.  


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