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.
At Rockpoint Probate Funding, we offer a probate advance service to help heirs and beneficiaries access funds while waiting for their settlements. Read through answers to our frequently asked questions below to understand the full benefit of probate funding.
What Is Probate?
Probate is a legal court process designed to review a deceased person’s will, validate its authenticity, and properly designate its assets to the correct beneficiaries. Beneficiaries must go through the probate process after a loved one’s passing in many scenarios. Until the judicial process “proves” the validity of the will, you will not be able to access any of the assets designated in the will.
Probate can be lengthy, expensive, tiresome, and public. You may need to hire a probate lawyer to represent your case, requiring you to pay expensive probate lawyer fees out of pocket. Until you can legally access your estate settlement, you and the other beneficiaries must cover all legal and court costs independently.
What Is a Probate Advance?
A probate advance provides heirs and beneficiaries with financial relief during the probate process. Probate funding acts as a cash advance with no repayment obligation.
With a probate advance, a third-party lender gives you a percentage of what your estate is worth so you can cover probate costs in the meantime. For example, if the estate is estimated to be valued at $100,000, the probate funder may offer a 20% advance, providing you with $20,000. Probate advances often range from 10% to 50%, depending on numerous factors.
After probate closes, the lender will secure their percentage from your inheritance. If your estate turns out to be valued at less than expected, you do not have a full repayment obligation (in many cases). In return for the service, probate lenders charge a flat fee rather than interest.
What Is the Benefit of Probate Funding?
The primary benefit of probate funding is fast access to the cash you need during the probate process. Probate can take months or even years. You may need to secure legal representation, which can be expensive.
Probate funding offers greater financial flexibility, allowing you to handle the probate process, pay off your debts, take care of your loved one’s final wishes, and more. You don’t have to pay anything off until the court settles your inheritance and you won’t face any interest rates or hidden fees. Because the lender now has stakes in your inheritance, they may also support you during the probate process to ensure that the court divides your estate correctly.
Do Probate Advances Have Any Drawbacks?
While probate advances offer quick access to inheritance funds, they can still have potential drawbacks. First, you typically must pay a fee for the service, which will be defined in the contract. If the court settles quickly, the fee may not be worth it.
Probate advances can occasionally create tension between family members as well. Some of the other beneficiaries may be upset if you access funding before them.
Is a Probate Advance the Same as a Probate Loan?
Despite the similar terminology, a probate advance is not the same as a probate loan. The benefit of probate funding is that you do not need to pay interest and typically do not have a full repayment obligation.
For example, say you take out a probate advance of $40,000, but issues arise during the process, revealing that the entire estate is only worth $30,000. With many probate advances, you don’t need to pay back the missing $10,000. With a loan, though, you would need to pay the $40,000 back in full, regardless of the probate conclusion, and you would need to pay interest on each monthly payment.
Probate loans also may require you to begin payments before the probate process settles. Because of the potentially high interest rates, you would pay much more in the long term for a loan versus an advance.
What Are the Eligibility Requirements of Probate Funding?
When you apply for probate funding, the lender will review various criteria to verify your status and your estate’s potential value. Eligibility requirements can vary based on the scenario. The lender will typically want to review the following:
- Your identification
- Your credit
- Your probate case number
- The estate value
- Your relationship with the deceased
- Your share in the estate
- The potential probate complexity
- Any existing debts or potential legal concerns
Assuming the above proves your case to be beneficial for the lender, you may be eligible for probate funding.
How Can You Find Probate Funding From a Reputable Provider?
If you want to benefit from probate funding, you need to find a reputable lender. We recommend considering client reviews, the fee structure, and your offered advance.
A reputable probate advance provider will clearly define their flat fee up front and any repayment obligations so you can clearly understand all financial requirements before signing. At Rockpoint Probate, we offer fast, non-recourse inheritance advances, prioritizing transparency, privacy, and client-focused service nationwide.
Can Probate Advances Delay or Speed Up the Probate Process?
Inheritance funding can speed up the probate process in some scenarios, as it may help you secure legal support. A professional attorney can expedite document filings and other processes on your behalf. Your lender may also help you through the probate process, overseeing the estate division to ensure everything supports your financial interests.
Now that you understand the benefit of probate funding, it’s time to secure your cash advance. Call Rockpoint Probate Funding today at (888) 263-8588 for a free consultation.
