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.
If you expect a generous inheritance but don’t want to wait until probate is over, consider probate funding. Instead of waiting months or years for your money, you’ll have access to some of it right away. This is appealing when you have big expenses, such as medical bills, that you need to pay for ASAP.
Is probate funding available in all states? Find out in this guide from our probate advance service.
What Is Probate Funding?
Probate funding is a cash advance on your inheritance. Depending on the lender you choose, you can claim an advance of 40% to 75% of the amount of your inheritance. The amount you can secure may range from $5,000 to $350,000.
Probate funding is not a loan. Unlike with a loan, there is no credit check, so funding is available even if you have poor or no credit. It also doesn’t matter if you’ve filed for bankruptcy or had your house put into foreclosure. Your financial situation has zero impact on your ability to secure probate funding.
Probate funding is also non-recourse, which means that if your inheritance is smaller than expected, you don’t have to pay the amount you borrowed back.
Probate Advance Legality and State Regulations
Is probate funding available in all states? Yes! Because probate funding is such a new industry, the vast majority of states have no laws regarding the practice. California is one of the few states that has enacted a law on the legality of probate lending. If you live in California, take a look at state laws with your lawyer to ensure that you remain in legal compliance with jurisdictional restrictions.
Are Probate Advances Subject to the Truth in Lending Act?
The Truth in Lending Act, or TILA, is a federal law that safeguards consumers from shady lending practices. In the case Reed v. Val-Chris, the court decided that probate funding isn’t subject to TILA. The reasons are as follows:
- The plaintiff’s funding was a cash advance, not a loan.
- The plaintiff didn’t incur any debt as part of the transaction.
- The plaintiff was not obligated to repay anything if the estate couldn’t satisfy the borrowed amount.
Avoid Predatory Lenders
Is probate funding available in all states? Yes, but the lack of regulations regarding the practice means that encountering predatory lenders is a strong possibility. That’s why it’s smart to only stick with reputable lenders, such as Rockpoint Probate Funding.
Here’s how to avoid probate funding scams:
- Be wary if a telemarketer calls you advertising their company’s probate funding service.
- Avoid lenders making promises that sound too good to be true.
- Make sure to read the fine print before signing anything. That contract might hold some nasty “gotchas,” such as a high interest rate or excessive monthly payments.
- Search for the lender on the Better Business Bureau website. Look for common complaints about the lender from consumers.
- Read client reviews to discover what borrowers have to say about the lender.
How To Apply for Probate Funding
Now that you know the answer to “Is probate funding available in all states?” here’s what to do if you’re ready to apply for funding.
- Consult a financial advisor and an estate planning lawyer for guidance. They’ll help you understand the impact probate funding might have on your inheritance.
- Know the expected value of your inheritance. You’ll typically need a fairly large inheritance of $10,000 or more to qualify for funding.
- Tell the administrator or executor of the estate that you’re planning to apply for probate funding. By doing so, they can prepare necessary documents for you and ensure they’re ready for the lending company to become involved in probate.
- Shop around for a lender, such as Rockpoint Probate Funding. Good probate lenders offer free consultations so you can learn about the funding process and ask any questions.
- Complete a simple application to determine whether you qualify for funding. Remember, you don’t have to undergo a credit check during the application process. Your income (or lack thereof) doesn’t impact the lender’s decision.
- If you’re approved, the lender should deposit the funds into your account within 24 to 48 hours.
Is Probate Funding Right for You?
Not sure whether you should apply for probate funding? Here’s how to tell if applying for a probate advance is right for your situation:
- You expect the probate process to take a long time. Probate can last many months, sometimes far longer if there’s a dispute over the will.
- You have immediate financial needs and can’t wait for your inheritance. If you have hefty medical bills to pay off or urgent home repairs to make, applying for probate funding could be a good choice.
- The outcome of probate seems uncertain. When you work with a probate lender, it has a vested interest in safeguarding its investment in your inheritance. The lender will use any and all measures to ensure that it will regain the money lent to you. This is ideal if the estate administrator is making poor decisions or not doing their job.
Learn More About Probate Process Variation and Inheritance Funding Laws
Is probate funding available in all states? Yes, and Rockpoint Probate Funding will work with you no matter where you live. If you’re ready to apply for funding or want to know more about probate law, contact us at (888) 263-8588 for a free consultation. We make the funding process hassle-free, and you could have access to your inheritance in as little as 24 hours.
