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.
Although a probate advance sounds like a great way to receive money from your inheritance early, you may wonder: Is probate funding safe? At Rockpoint Probate Funding, we focus on giving our clients a safe, hassle-free transaction.
Finding a funding company that makes the process smooth from start to finish is important. The company should also minimize or eliminate your financial risk through legal protection. Learn more about the signs that show your funding company offers only safe probate advances.
Understanding Probate Funding
Probate funding, also called a probate advance, is an option for receiving part of your inheritance sooner rather than later. In other words, you don’t have to wait for the estate to move through probate court to receive a portion of what you’re entitled to.
When an estate goes into probate, it becomes subject to court proceedings. The court must follow a series of steps to ensure creditors receive payments and heirs receive the correct portion of the estate. This process can take several months. If the probate case is complex, it may take a year or more to settle.
You may be struggling with day-to-day bills while waiting for your inheritance or want to invest part of the inheritance money in a new business opportunity that won’t be available for much longer. Probate funding gives you leeway in these situations and more.
What Is Probate Funding?
One way to ensure probate funding is safe is to work with an established company. To avoid predatory lenders, be certain the company is following any and all regulations in your state.
When the probate company is considering your application, it will need documents that show the status of the estate. You must prove the estate is in probate and that you stand to inherit something from it.
If the funding company decides you will likely get the inheritance, it may make you an offer for a portion of what you’ll receive.
At the time your inheritance comes through, the amount you received in the probate funding will come out of the inheritance.
How Do You Know Whether Probate Funding Is Safe?
Should you consider a probate advance? You should only accept probate funding if you trust the company providing it. Examine the following six factors when determining a company’s trustworthiness:
1. Protection Against Unexpected Issues
If your inheritance falls through the cracks for whatever reason, your financing company should give you assurances that you will not have to repay the amount you received.
By giving you a portion of your inheritance early, the financing company performed the necessary research to be confident that you would receive your inheritance. It’s not your fault if the financing company was wrong.
2. No Monthly Payments
You should not have to make monthly payments to access the funds. A trusted probate funding company would only recover the borrowed amount after the case finishes going through probate and you receive your inheritance.
3. Transparency in the Transaction
The company should be open and honest about how the process works. A predatory lender may force you to pay hidden fees or hit you with extremely high interest rates. Probate funding is safe if you choose a company that is completely transparent about the process and the fees involved.
4. Understanding the Value of Your Inheritance
If the lending company greatly overvalues or undervalues the inheritance you will receive, you may be unsure whether probate funding is safe with that company.
- Any company that initially overvalues your inheritance may try to demand that you pay the difference out of pocket afterward with huge fees attached.
- Some companies may purposefully undervalue your inheritance to give you less money up front, allowing it to pocket the difference when the actual value of the inheritance occurs.
Any reputable probate funding company will explain how it determines the value of your inheritance.
5. Understanding the Length of Time Probate Will Take
The faster your case moves through probate, the sooner you will receive your inheritance. If the probate process is short, you may not need the money from inheritance funding.
A probate funding company will estimate the amount of time your case will remain in probate when it makes an offer. A trustworthy company should give you this estimate so you can make an informed decision about seeking a probate advance.
6. Giving You Time To Consider the Offer
It is natural to wonder whether probate funding is safe. You may have questions about the offer from the probate funding company.
Any trustworthy company should be willing to give you the time to consult with others about the offer. If the company demands an immediate decision or tells you that the offer is only for a limited time, you might want to move on.
At Rockpoint Probate Funding, we recommend that our potential clients consult with legal or funding professionals about the offer before accepting it.
Learn More About Safe Options for Probate Funding
Probate funding is a helpful option for people in line to receive an inheritance but who find their cases stuck in probate. However, you must be on the lookout for predatory lending practices.
Is probate funding safe? At Rockpoint Probate Funding, we provide funding transparency that fits within your local probate law statutes. We provide protections for you, including funding for non-recourse loans. Our protections help you if your inheritance doesn’t pan out as expected. We emphasize client-focused service in all our transactions.
Call us today at (888) 263-8588 for a free case review.
