If you’re going through probate in California, you may already know how long and complicated the process can be. A probate advance—also sometimes referred to as an inheritance loans or inheritance advance—can provide beneficiaries with immediate access to funds while the estate is being settled. However, without careful planning, taking out a probate advance can lead to costly mistakes that can complicate the process and impact your inheritance. Here’s a guide to common mistakes people make when applying for an inheritance advance and how to avoid them.
Failing to Understand a Probate Advance Fully
One of the biggest mistakes beneficiaries make is misunderstanding how probate advances (sometimes referred to incorrectly as an inheritance loan) work. Unlike traditional loans, probate advances are non-recourse to the applicant, meaning your credit or personal assets are not impacted. The funding company provides funds based on the estimated value of the inheritance and purchases a portion of your share directly. Once probate is complete, the advance is repaid directly from the estate, not from you. It’s essential to understand the terms, including fees, and how the advance impacts your final inheritance amount.
Not Consulting with an Attorney
Many people skip consulting an attorney before taking out a probate advance, which can lead to problems. Probate laws vary by state, and California has specific regulations that can impact your options. A probate attorney can provide valuable insight into whether a probate advance is the right choice for your situation and help you understand any legal implications. An attorney can also review the agreement to ensure you’re getting fair terms.
Choosing the Wrong Inheritance Funding Company
Not all probate advance companies are created equal, and some may charge more or have unfavorable terms. It’s crucial to research thoroughly before making a choice. Look for a funding company that specializes in probate or inheritance advances and has experience in California probate law. Reading reviews, checking credentials, and asking for recommendations can help you find a reputable funding company and avoid falling victim to predatory lending practices.
Borrowing More Than You Need
Taking out a larger advance than necessary can significantly reduce your inheritance. It’s often tempting to borrow the maximum amount, but doing so can increase the fees and leave you with less once probate concludes. Instead, assess your immediate needs and only borrow what’s essential.
Neglecting Communication with Other Beneficiaries
If you’re not the sole beneficiary, it’s crucial to communicate with other heirs about the advance. Applying for a probate advance without discussing it with co-beneficiaries can potentially create conflicts, so consider keeping everyone informed to avoid misunderstandings and ensure that all beneficiaries are on the same page.
How Probate Advance Can Help
At Probate Advance, we provide heirs with a hassle-free way to access their inheritance early. We understand that waiting for probate can be stressful, which is why we offer a fast, transparent, and reliable solution. Our goal is to help you get the funds you need, when you need them most—without the burden of debt.
Need more information or ready to get started with funding in advance of your inheritance? Contact Probate Advance today, and our team of experts will guide you through the process to unlock the funds you’re entitled to.
Applying for a probate advance in California can be helpful for beneficiaries who need immediate funds, but it’s essential to approach the process carefully. By understanding the terms, consulting with professionals, and considering alternative options, you can make a more informed decision and avoid the common mistakes that can cost you in the long run. If you’re considering a probate or inheritance advance, speak with a probate attorney and financial advisor to ensure that your choice supports both your immediate needs and future financial well-being.