Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects.
You’re expecting a nice inheritance, and you’re already planning what to do with the money — buy a house, perhaps, or maybe take that vacation you’ve long had on your bucket list. Not so fast, though. Before your inheritance makes its way to you, the deceased’s estate will need to go through probate.
If you’d rather not wait for the probate process to finish, consider applying for a probate advance. Below, our probate funding service explains what you need to know about how probate advances work compared to traditional loans.
What Is a Probate Cash Advance?
A probate cash advance is similar to a loan in that it provides you with money right away. The main difference is that there are no interest or monthly payments. Instead, the funding company takes a fixed percentage of your inheritance after estate distribution.
A probate advance gives you money that you can spend however you like. You can use your probate advance for:
- Preventing the forced sale of assets: Did the decedent split ownership of an asset between multiple heirs? If you’d like to keep the asset but can’t afford to buy out heirs, you’ll have to sell. With heir approval, though, you can use your cash advance to buy out heirs and retain ownership of the asset.
- Emergency bills: When an emergency strikes, you don’t have time to wait for the probate process to finish. You can use your cash advance to pay for medical bills, car repairs, home repairs, and more.
- Life’s necessities: Probate cash advances are ideal for buying groceries, paying utility bills, covering school tuition, purchasing clothes, etc.
Probate Advances vs. Inheritance Loans and Traditional Loans
You might see probate advances referred to as inheritance loans, but they are not the same thing. Both provide fast access to cash, but that’s where the similarities end.
With an inheritance loan, you’re borrowing against your inheritance, which you’ll use as collateral for the loan. The lender will evaluate the deceased’s estate and offer you a loan based on its value.
Along with the loan comes an interest rate, just as you’d have with a traditional loan or credit card. If you accept the loan, the lender will take your full inheritance once the probate process ends, plus accrued interest.
Traditional loans don’t require an estate evaluation process, but you will need to undergo a credit check, and you must prove that you have enough income to pay back the loan.
Applying for a loan may seem like a good solution, but loans come with several drawbacks:
- Interest rates can be very high. The longer probate takes, the more you’ll have to pay.
- Probate lending is fairly unregulated, which means it’s easy for predatory lenders to take advantage of you.
- If you opt for an inheritance loan, the lender becomes involved in the estate’s probate, which can introduce conflict between family members and heirs.
Why a Probate Advance Is the Smartest Choice
Compared to loans, getting an advance on your inheritance offers many appealing perks.
Fast Funding
Did you know that the probate process can take months or even years to complete? If the decedent had no will or heirs are disputing the will’s validity, probate can stretch on for a remarkable length of time. Meanwhile, you’re stuck waiting on your inheritance, with bills piling up all the while.
A probate cash advance provides money when you need it, not months or years down the road. Plus, it’s far faster than applying for a traditional loan.
No Credit Check
Traditional lenders will go over your credit history with a fine-tooth comb. Missed a credit card payment or two? Have an excessive debt-to-income ratio? You’re probably not a good candidate for a traditional loan.
With a cash advance, it doesn’t matter how good or bad your credit score is. That’s because the advance company will take its payment from your inheritance, so it doesn’t have to rely on you to pay back the money you’ve borrowed. Thus, a cash advance is the perfect solution for those with challenged credit.
Not Income- or Employment-Based
Traditional lenders want to know that your income is high enough to repay a loan. You’ll need to have steady employment, too. If you’re between jobs or don’t have a decent income, traditional lenders aren’t likely to approve you for a loan.
Inheritance cash advances, on the other hand, are not based on your income or employment.
No Interest or Monthly Fees
No one wants to deal with the headache of loan payments and hefty interest rates when they’re grieving. Traditional loans require monthly payments, and if you miss one, your credit score will take a serious hit.
With a cash advance, you don’t owe a penny until after the probate process. There’s also no interest to worry about.
No Liability for a Lack of Funds at the Time of Distribution
What happens if your inheritance is smaller than you expected it to be? No problem. We don’t hold you liable for insufficient funds as long as you accurately filled out your advance application.
Who Qualifies for a Probate Cash Advance?
Generally, those with an inheritance of $10,000 or more can qualify for a probate cash advance. Probate must also be open or in the opening process. Give us a call for a consultation and we’ll let you know whether you qualify.
Solve Your Financial Challenges With a Probate Advance
Ready to apply for funding or want tips on collecting your inheritance? Contact Rockpoint Probate Funding at (888) 263-8588.
