How to Document Inheritance for a Loan

Getting money with an inheritance loan

You may be waiting on an inheritance from a loved one who died recently. You may have been notified as a beneficiary or told by the decedent before they passed away. Even if you are entitled to the inheritance, you will have to wait until after probate is completed for the estate. If you’re in need of your inheritance money right away, you may be eligible for an inheritance advance or loan.

What is an Inheritance Advance?

An inheritance advance is a way to get money before the inheritance is dispersed by selling it to a lending company. An advance is different from inheritance loans, which use the inheritance as collateral.

You may hear other terms used to mean inheritance advance, such as estate advance, inheritance cash advance, or probate advance. These terms all mean the same thing and are different from what is called inheritance loans, estate loans, and probate loans, which also refer to the same thing and allow you access to your inheritance immediately.

How Does an Inheritance Advance or Loan Work?

While inheritance loans and inheritance advances are different, they have some similarities. You must apply for both, and approval depends at least partially on your future inheritance. You can’t receive them from traditional lenders because of the high risk. Hard money lenders provide inheritance loans and advances.

The inheritance funding company will discuss your loan application with the executor of the estate or estate attorney to determine if you qualify for an inheritance advance or loan. They will provide you with an offer based on your expected inheritance. The lender also discloses the terms and fees of the loan when they provide an offer.

Once you agree to the terms of the offer and sign the paperwork, you’ll receive the inheritance funds in your bank account. The inheritance funding company will receive repayment of the loan when the estate assets are distributed to the heirs.

Your Responsibility with the Inheritance Loan

You have two main responsibilities when you apply for inheritance loans or an inheritance advance. The first responsibility is to provide the correct documentation as requested by the hard money lender. The lender will provide you with details on what information they need to approve your application.

The second responsibility is to pay back the inheritance loan. If you choose to get a loan, you will be responsible for making monthly payments until the estate goes through probate. At the end of that time, the balance is repaid from the estate’s assets.

If you choose to get an inheritance advance, you won’t need to make monthly payments. Instead, the lender will purchase a portion of the inheritance for a fee. They will be repaid when the estate is dispersed, but you aren’t responsible for the repayment if there are no funds left in the estate to be distributed.

Why Should You Get an Inheritance Loan?

An inheritance advance or loan can help you through some hard times while you wait for your inheritance. You may need the financial help to pay medical bills, funeral expenses, legal fees, and monthly mortgage payments as well as other bills, living expenses, and outstanding debts.

If you can wait for the inheritance to get your money, it’s recommended that you do because these loans can come with high interest and fees. However, they can help you out if you have no other way to get money that you need until you receive your inheritance.

How to Get an Inheritance Advance or Loan

You will find many inheritance advance companies to choose from. You’ll want to do research and compare loan terms to find out which lender is right for you. It’s important to make sure there are no hidden fees and that you understand the terms.

The amount you’ll pay for an inheritance advance will depend on how far the estate is into the probate process. Probate can take months or even years before it’s completed. You will pay more for inheritance loans and advances that don’t get repaid for a long period. There can be delays with the probate process, which can also add to your cost of the loan.

Once you find an inheritance funding company, you will fill out an application online. You provide information about yourself and the probate estate. The lender will review your information. They may check your credit score and employment history like they would with personal loans or car loans even though approval often hinges on the inheritance itself more than on the applicant.

The lender will discuss the situation with the executor or personal representative of the estate. You may want to let them know you plan on applying for an inheritance advance ahead of time since it will require their cooperation for approval.

How to Provide Proof That You’re an Heir

You will need documentation to prove that you will be receiving an inheritance to qualify for inheritance loans. Lenders require copies of your ID, which may be a driver’s license or other photo ID. The inheritance funding company will likely require a copy of the decedent’s death certificate and will to show that you are an heir to the estate.

You will also need to provide documentation showing who is the executor of the estate. The probate court provides letters of testamentary to the appointed executor that gives them the authority to act on behalf of the estate.

You may be asked to provide any other letters or legal documents from probate court. If in doubt, you can ask if a document is necessary. Some lenders may ask for bank statements and other traditional documents used in approving a loan. Once the funding company receives all your documents, they can contact the executor or estate administrator for the next step, which is to find out if you will be receiving an inheritance.

The lender may request probate court certification from the executor for the amount of your inheritance. This information will let them know how much they will loan you, which is usually based on a percentage of the total inheritance. It’s common for inheritance loans and advances to be for 50 or 60 percent of the total inheritance. Some lenders may increase the percentage to even higher or lower based on information they receive during the application process.

How Probate Works

Before you decide to get an inheritance cash advance or apply for inheritance loans, you should have a basic understanding of how the probate process works. You cannot receive your inheritance money until probate is finished.

Probate is a legal process that begins when someone files a petition to open it with a copy of the death certificate. The probate court approves the person named in the will to act as executor at a hearing. The executor will take inventory of the estate assets and notify all beneficiaries. They will also notify creditors, sometimes publishing notice in the local newspaper if required by the state.

Creditors are given a few months to submit claims. The exact timeline will vary by state. The executor pays all claims and files the final tax return for the state. They will need to pay the estate tax in states where it is required if the estate has enough assets for the tax to apply.

Probate Timeline Varies Widely

You may wonder how long probate will take. While it can be completed in six or eight months, it often takes much longer because of delays. Probate can be delayed right from the start if someone contests the will. Probate court will need to hear the evidence presented and make a ruling to keep the will, validate a new will, or put the estate intestate, which means there is no valid will.

The executor may refuse to pay some claims made by creditors if they feel these claims aren’t valid. They may also ask for extensions on their deadlines if they have trouble finding and securing assets. The executor may need to sell certain estate assets, such as property or a business if they don’t have enough liquid assets to pay creditors It can take months for property to sell with approval from the court.

Get Financial Assistance with an Inheritance Cash Advance

All this time, you are waiting for your part of the inheritance. These delays can cause probate to continue for years. If you need your inheritance money and can’t wait for probate to be completed, you may want to consider an inheritance advance or one of the available inheritance loans.

If you choose to go this route, make sure you know the terms of the estate loans or cash advances, especially if there are further delays with probate. You can also talk to the probate attorney and find out how long they estimate it will take to get your inheritance funding. provides an inheritance cash advance for people who need money now instead of waiting for their inheritance. We offer transparent terms with no risk for your probate advance. We’ll provide you with a no-obligation offer based on your expected inheritance.