A detailed look at the mechanics behind inheritance advances — what happens behind the scenes, how decisions are made, and what protects you.
An inheritance advance is technically an "assignment" — a legal transfer of your right to receive a future distribution from an estate. You assign a specified dollar amount of your expected inheritance to the advance company. In exchange, they provide you with immediate cash. When the estate closes and your share is distributed, the assigned amount goes to the company instead of to you. You keep the rest.
This is fundamentally different from a loan. With a loan, you borrow money and promise to pay it back. With an assignment, you're selling a portion of a future right. The distinction matters because it means there's no debt, no interest, no monthly payments, and no personal liability. If the estate produces less than expected, the advance company absorbs the loss — they have no claim against you personally. This is called "non-recourse" protection.
Not every estate qualifies for an advance. The company needs to verify that your inheritance is real, sufficiently certain, and large enough to support the advance. Here's what they look at:
Your legal standing. Are you actually named in the will? If there's no will, does state intestacy law entitle you to a share? The company verifies this through the will, the probate petition, and, if necessary, court records.
Estate assets and debts. The company estimates what the estate will produce after all debts, taxes, and expenses are paid. They look at the gross estate value, outstanding mortgages and liens, credit card and medical debt, estimated attorney and executor fees, potential tax liability, and any other claims against the estate.
Liquidity and timeline. Estates with liquid assets (cash, stocks, bonds) are easier to evaluate than estates with mostly illiquid assets (real estate, business interests). The expected timeline for probate also matters — longer timelines mean more risk for the advance company.
Complications. Will contests, creditor disputes, tax audits, and family conflicts all increase risk. The company evaluates whether these issues could reduce or eliminate your share.
Most companies advance 30-40% of your expected net inheritance — the amount you'd receive after all estate debts, taxes, fees, and expenses. The fee (the difference between what you receive now and what the company collects from the estate) is based on several factors: the size of the advance, the estimated time to estate closing, the type and liquidity of estate assets, and the overall risk profile.
The fee is disclosed upfront in writing before you sign anything. It's a flat amount — it doesn't increase if probate takes longer than expected. There are no hidden charges, origination fees, or processing fees. If you're comparing offers from multiple companies, focus on the total cost: what you receive now versus what will be deducted from your inheritance later.
Non-recourse structure. If the estate produces less than expected — or nothing at all — you keep the cash you received and owe nothing back. The company cannot pursue you, garnish wages, or place liens on your assets.
No impact on credit. Advances don't appear on your credit report because they're not debt. There's no credit check during the application process.
Cancellation rights. Most advance agreements include a cancellation period (typically 3-5 business days) during which you can back out at no cost.
No impact on other heirs. Your advance is based solely on your share. Other beneficiaries' portions remain completely unaffected. The executor distributes everyone else's share normally.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. We strongly encourage you to consult with a qualified attorney or financial advisor for guidance specific to your situation. First Heritage Funding is not a law firm and does not provide legal services.
Basic information about the deceased and the estate is enough to start. Our team handles most document gathering by working with the estate attorney. Helpful items include the death certificate, will or trust, and probate filing — but don't worry if you don't have these.
Based on the estate's overall value, your expected share, the type and liquidity of assets, outstanding debts, and estimated timeline. We typically advance up to 30-40% of your anticipated net inheritance.
Yes. Each heir can apply independently based on their own expected share.
No. An inheritance advance is an agreement between you and the advance company. The executor is notified that your share should be directed according to the assignment when the estate closes, but they don't need to approve the transaction.
Ask: What is the total fee? Are there any other charges? What happens if probate takes longer than expected? What if the estate produces less than expected? What is the cancellation period? Can I see the full agreement before committing? A reputable company will answer all of these directly.
Get a free, no-obligation quote in minutes. Call us or fill out our simple form.