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’ve ever gone through the probate process, you already know it can take months—sometimes years—before heirs receive anything from an estate. During that waiting game, it’s not uncommon for beneficiaries to struggle with legal costs, personal bills, or property-related expenses they can’t easily cover. Probate funding, also called an inheritance advance, can help bridge the gap and relieve some financial stress.
Below, you’ll find answers to common questions about how probate funding works, the advantages it provides, and a few points to consider before you sign an agreement.
Probate in a Nutshell
Probate is a court-supervised approach to distributing a deceased person’s property. The court validates the will (if one exists), identifies heirs or beneficiaries, settles debts, and collects taxes. Only when it finishes can everyone receive their rightful shares. That’s straightforward enough, but the timeline isn’t always short. Even a relatively simple estate might last half a year, and complicated scenarios—like when the estate holds multiple properties or the will is contested—can drag on longer.
Meanwhile, you or other heirs could be stuck paying funeral costs, mortgage installments, or attorneys’ fees out of pocket. If the estate is big enough, you’ll eventually get reimbursed once probate ends, but that doesn’t help with immediate bills. This is where a probate advance might be beneficial.
What Is a Probate Advance?
An inheritance advance is a type of funding that pays beneficiaries or heirs right away, rather than making them wait until the court gives the green light. A probate funder (like Rockpoint Probate Funding) looks at how much you’re likely to inherit and offers a portion of that sum to you up front. If you accept, you get the money quickly—often in days—without having to provide collateral or monthly payments.
When probate eventually concludes, that funder gets its reimbursement plus a fee directly from what the estate pays you. If, for some reason, the final inheritance is lower than expected, the funder bears the shortfall in many cases. This arrangement differs from a standard loan in a few big ways: you don’t pay interest month by month, and you might not owe more than what the estate can actually cover.
Why Consider Probate Funding?
- Immediate Access to Cash
Probate can run for months, leaving you covering costs—like property taxes or funeral expenses—out of your own pocket. A probate advance means you can handle those obligations without waiting for the court to distribute the inheritance. - No Monthly Repayment
Unlike a bank loan, which requires paying principal and interest regularly, a probate advance typically involves a one-time fee that comes out of your eventual share. You’re not worried about monthly bills or rising interest. - Less Financial Stress
This option can relieve the anxiety of wondering how to pay legal fees, medical bills, or everyday expenses. By taking an advance, you can tackle urgent matters now and let the probate system do its work in the background.
Are There Downsides?
Cost: Probate funding providers will charge a fee that’s generally higher than what you might see with a traditional bank loan’s interest rate—though you’ll rarely see it structured as interest. If probate wraps up quickly, paying this premium might feel less worthwhile.
Misunderstandings: Occasionally, other heirs may assume your advance affects their shares. In reality, each heir’s portion is treated individually, so your advance should only come out of what you stand to inherit. Communicating clearly can avoid tension.
How Is It Different from a Probate Loan?
Although the terms “probate advance” and “probate loan” sound similar, there’s a key difference. A probate loan often requires monthly installments and accrues interest. If the estate’s final value is less than predicted, you’d likely still owe the original debt. By contrast, a probate advance usually doesn’t need monthly payments and might not demand full repayment if the estate’s worth drops unexpectedly.
For instance, imagine you take a $30,000 inheritance advance, but later, the estate only yields $25,000 for your portion. With many advances, you might not be on the hook for that missing $5,000. With a typical loan, you’d owe the full amount plus interest, no matter what.
What to Expect if You Apply
- Review Estate Details: The probate funder checks the will, estimates the estate’s total value, and verifies your beneficiary status.
- Offer: You receive a proposal stating how much they can provide and what fee they’ll charge.
- Contract: If you sign, you get the funds soon—often within days—avoiding months of probate waiting.
- Probate Closes: Once the court finishes distributing assets, the funder takes its portion out of your share. If for some reason your share is smaller than expected, you might not have to repay more than what remains.
Because the estate’s potential value secures the funding, you’re rarely asked about credit scores, employment, or personal collateral. It’s all about what the court is likely to grant you.
Checking Eligibility
Companies consider how large the estate is, how likely it is to cover debts, and whether your share appears large enough to justify the upfront payout. They may look at court filings, appraisals, and the executor’s contact information to feel comfortable that their advance can be recovered once probate settles. If the estate is tangled with too many debts or complicated legal disputes, you might receive a smaller advance offer or none at all.
Where to Find a Reliable Provider
If you decide on probate funding, you’ll want a business that clearly states its fees. Watch out for hidden costs or unclear contracts. Many families compare providers, read reviews, and ask about how quickly they pay. Some companies aim to finalize an application in just a couple of days.
Rockpoint Probate Funding is one example that offers these advances across the nation, focusing on transparency. If your estate looks straightforward enough for them, they may free up money within 24 hours. That can be a life-saver if you’re juggling attorney bills, property upkeep, or personal debts while probate drags on.
Will This Slow Down or Speed Up Probate?
Inheritance funding won’t actually change the court’s timeline. However, having access to funds might help you hire a skilled probate attorney or handle other tasks promptly, which can indirectly speed things along. On the other hand, it doesn’t lengthen the wait either. The procedure remains in the court’s hands, and your only difference is receiving your inheritance portion sooner.
Bottom Line
Probate can be stressful if you’re counting on money that’s effectively locked away until a judge finalizes everything. Probate funding gives you early access to those funds without demanding monthly repayments or risking personal property. While there’s a fee, you’re paying for speed and peace of mind. If your inheritance is large enough to handle it and you need immediate help covering expenses, it can be a practical solution.
If you’re curious about an advance on a pending probate settlement, you can talk to a reputable funder. Ask about their fee structure, how long approvals take, and whether they’ll still accept a smaller estate. Getting answers can help you weigh your options and decide if securing an advance will help you face the cost of probate or keep up with everyday obligations until your inheritance fully arrives.
