If you are looking for early access to your inheritance, understand the difference between an advance and a loan — they work very differently.
When you search for ways to access inheritance money early, you'll see the terms "inheritance loan," "probate loan," "estate loan," and "inheritance advance" used interchangeably. But they aren't the same thing. The distinction between an advance and a loan is significant — and understanding it can save you thousands of dollars and a lot of stress.
An inheritance advance (also called a probate advance, estate advance, or inheritance cash advance) is a transaction where a funding company provides you with immediate cash in exchange for a portion of your future inheritance. The key word is exchange — you're assigning a share of your inheritance to the company, not borrowing money.
This is a critical distinction because it means there's no personal liability. If the estate produces less than expected, or if the estate doesn't close for some reason, you owe nothing. The advance company absorbs that risk. This is what "non-recourse" means — they have no recourse against you personally.
A true inheritance loan is a personal loan that uses your expected inheritance as collateral. Like any loan, it comes with interest that accrues over time, requires monthly payments, involves a credit check, and creates personal liability — meaning you're legally obligated to repay the loan regardless of what happens with the estate.
Some companies market what are essentially advances using the term "inheritance loan" because it's a common search phrase. If you're evaluating options, always ask: "Am I personally liable for repayment if the estate doesn't pay out?" That answer will tell you whether you're dealing with an advance or a loan.
| Inheritance Advance | Inheritance Loan | |
|---|---|---|
| Credit check | None — based on the estate | Required — based on your credit |
| Monthly payments | None | Yes — regular payments required |
| Interest | None — one flat fee | Yes — accrues over time |
| Personal liability | None — non-recourse | Yes — you owe regardless |
| Approval speed | 1-3 days typically | Varies — may take weeks |
| Impact on credit | None — not reported | Yes — appears on credit report |
| If estate falls short | You owe nothing | You still owe the full balance |
| How it works | Assign a portion of inheritance | Borrow against future inheritance |
The difference isn't just semantic — it has real financial consequences. With a loan, if probate takes three years instead of one, you've been paying interest that entire time. If the estate has unexpected debts or the value drops, you still owe the full loan amount plus interest. With an advance, the cost is fixed upfront and doesn't change no matter how long probate takes or what happens with the estate.
Before signing anything, we encourage you to ask these questions of any company offering inheritance funding — including us:
Am I personally liable for repayment if the estate doesn't pay? Will this appear on my credit report? Are there monthly payments? Does the cost increase if probate takes longer? What is the total cost — all fees included — before I receive any money? Can I cancel after signing?
A reputable company will answer these questions clearly and in writing.
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.
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