Searching for an inheritance loan? Before you borrow against your inheritance with interest, understand why an inheritance advance may be safer, simpler, and more affordable.
An inheritance loan — also called an estate loan, heir loan, or probate loan — is a traditional loan where you borrow money using your expected inheritance as collateral. Like any loan, it comes with an interest rate, a repayment schedule, and full personal liability. If probate drags on for years, interest keeps accruing, and you're responsible for repaying the full amount regardless of what happens with the estate.
Inheritance loans typically require a credit check and income verification. If your credit is poor, you may be denied or offered unfavorable terms. The lender also becomes involved in the probate process as a creditor, which can create complications and family conflict.
An inheritance advance is structurally different from a loan. Instead of borrowing money and repaying it with interest over time, you're selling a portion of your future inheritance in exchange for immediate cash. The advance company takes on all the risk — if the estate falls short or takes years to close, you owe nothing extra.
There are no monthly payments, no interest charges, no credit checks, and no personal liability. The cost is a single flat fee disclosed upfront before you agree to anything. Many heirs find this simpler, safer, and ultimately less expensive.
The biggest risk with an inheritance loan is compounding interest. Probate timelines are unpredictable — what you expect to take 6 months could stretch to 2 or 3 years. A $20,000 inheritance loan at 12% APR could cost you $4,800 in interest over two years — on top of repaying the principal.
With an inheritance advance, the cost is fixed from day one. Whether probate takes 6 months or 6 years, you pay the same flat fee. No surprises, no escalating costs.
| Inheritance Advance | Inheritance Loan | |
|---|---|---|
| Type of transaction | Sale of future inheritance | Traditional loan |
| Credit check | Not required | Usually required |
| Interest charges | None — flat fee | Accrues monthly |
| Monthly payments | None | Required |
| Personal liability | None — non-recourse | Full personal liability |
| If estate falls short | You owe nothing | You still owe the loan |
| Appears on credit report | No | Yes |
| Funding speed | 24–48 hours | Often weeks |
| Cost if probate takes 3 years | Same flat fee | Significantly higher |
For most heirs, an advance is the better option. You avoid interest, monthly payments, credit checks, and personal liability. The only scenario where a loan might make sense is if you need to borrow more than an advance company can provide.
Inheritance lending is largely unregulated, meaning fewer consumer protections. Inheritance advances carry less inherent risk because you're never personally liable for repayment.
Yes. Your credit score, history, income, and employment are completely irrelevant. Approval depends entirely on the estate.
Advance fees are a flat percentage disclosed upfront. Loans accrue interest over time, so the longer probate takes, the more expensive the loan becomes. For most heirs, the advance is less expensive overall.
You may still be able to get an advance on the remaining portion of your inheritance. Contact us to discuss your specific situation.
Get a free, no-obligation quote in minutes. Call us or fill out our simple form.