Yes, you can get an advance on your inheritance while probate is still open. A funding company pays you a lump sum now in exchange for a portion of your future distribution, typically keeping 10% to 50% of what you were set to receive. There is no credit check, no monthly payment, and no personal liability if the estate ends up worth less than expected. The tradeoff is straightforward: you trade a slice of your inheritance for access to cash months or years before probate closes.
How the Transaction Actually Works
An inheritance advance is not a loan. It is a sale. You sign an assignment of beneficial interest, which transfers your right to receive a specific dollar amount from the estate to a funding company. In return, the company wires or mails you a lump sum. The signed agreement is then filed with the probate court so the personal representative pays the assigned portion directly to the company when the estate closes.
Because the company is buying a piece of your interest rather than lending against it, the company carries the risk. If debts, taxes, or administrative costs eat into the estate more than expected and your share shrinks, you owe nothing back. The company collects only what the estate actually distributes. That risk transfer is the main reason fees run higher than a typical personal loan.
Probate itself commonly takes six months to two years, and contested or complex estates can stretch longer. The advance exists to bridge that wait.
What It Costs
Inheritance advance companies charge a flat percentage of the amount advanced, not an interest rate that compounds. Fees generally fall between 10% and 50%, with most transactions landing between 20% and 40%. Where your fee lands depends on a few things:
- Estate complexity. Contested wills, multiple beneficiaries, or hard-to-liquidate assets like real estate push fees higher because the company faces more uncertainty and a longer wait.
- Estimated timeline. The longer the company expects to wait for the estate to close, the more it charges. A straightforward estate near final distribution costs less than one still in early probate.
- Size of the advance relative to the total estate. Larger advances carry more risk for the funder, which increases the fee percentage.
- Outstanding estate debts. Significant unpaid creditors raise the chance of a reduced payout, and the fee reflects that risk.
A worked example makes the math concrete. Say you’re entitled to $50,000, and you take a $25,000 advance at a 40% fee. When the estate closes, the funding company collects $35,000 from your share. You keep $15,000 of your original $50,000.
Who Qualifies
Two things have to be true before a funding company will move forward: the estate must be formally open in probate court, and you must have a verified legal right to a share.
The estate needs an active probate case with a court-appointed personal representative — an executor if there is a will, an administrator if there is not. That appointment is confirmed by Letters Testamentary or Letters of Administration. Without those documents on file, no one is legally authorized to distribute assets, and no company will fund an advance.
Your heirship has to be verifiable too. You must be named in the will or qualify as a legal heir under your state’s intestacy laws. The funding company confirms your status by reviewing the probate petition and any filed will. Most companies also set a minimum expected inheritance, commonly around $15,000, to justify the cost of processing.
Documents to Gather Before You Apply
Having the paperwork ready shortens the review. You’ll typically need:
- A certified death certificate, available from the vital records office where the death occurred.
- The probate petition filed with the court to open the estate.
- A copy of the will, if one exists.
- Letters Testamentary or Letters of Administration from the probate court clerk.
- An estate inventory or asset summary listing bank accounts, real estate, investments, and known debts such as funeral costs, medical bills, or taxes owed.
- The contact information for the estate attorney handling the probate case.
If you have already taken an advance from another company against the same inheritance, disclose it up front. An undisclosed prior assignment usually triggers an immediate rejection, because the funding company needs to know exactly how much of your interest is still unencumbered.
What Happens After You Apply
You submit documents through a secure portal or by overnight mail. The funding company then verifies the case by contacting the estate attorney to confirm the probate is active, your status as a beneficiary, the estimated value of your share, and whether any liens or competing claims affect your portion.
If everything checks out, the company sends a final assignment agreement showing the exact dollar amount you’ll receive now and the total amount the company will collect from the estate later. Read it carefully. Look at the fee, any additional charges, and what happens if the estate’s value changes.
The signed agreement must be notarized. Some companies arrange a mobile notary, though you may need to cover that cost separately. Once the notarized agreement is returned, disbursement usually happens within a few business days by wire transfer or check.
How Estate Debts Can Shrink Your Share
Beneficiaries get paid last. Before any distribution, the estate has to pay its obligations in a set order: administrative expenses (court fees, attorney fees, personal representative compensation) first, then secured debts, funeral costs, medical bills from the final illness, and taxes. Only after all of that is satisfied does the balance flow to heirs.p>
Your advance is tied to what’s left after those payments. If the estate carries more debt than originally expected, your share can shrink or disappear entirely. Because the advance is a purchase and not a loan, you owe the company nothing if that happens. But you also don’t get back the difference between what you received and what you had hoped to receive. The uncertainty runs one direction, and it belongs to the company only after you’ve signed.
Tax Consequences
Property received through an inheritance is generally not treated as taxable income under federal law.1Office of the Law Revision Counsel. 26 USC 102 Gifts and Inheritances Because an inheritance advance is structured as a sale of your beneficial interest rather than a loan, the tax treatment can be more nuanced. The proceeds you receive from the funding company are generally not income in the way wages or investment gains are, but the specific consequences depend on the assets in the estate and how the transaction is characterized.
If the estate holds appreciated assets like stocks or real estate, selling your interest in those assets can raise capital gains questions. Any income generated by inherited assets after the decedent’s death, such as rental income or dividends, is taxable regardless of whether you take an advance.1Office of the Law Revision Counsel. 26 USC 102 Gifts and Inheritances For larger estates or estates with significant appreciated property, talking with a tax professional before signing is a practical step.
What an Advance Can Do to Government Benefits
If you receive Supplemental Security Income, Medicaid, or another means-tested benefit, an inheritance advance can jeopardize your eligibility. These programs set strict limits on the countable resources you’re allowed to hold.
The SSI resource limit for an individual is $2,000 in 2026.2Social Security Administration. 2026 Cost-of-Living Adjustment COLA Fact Sheet A lump-sum advance can push you above that threshold instantly. SSI eligibility is measured based on the resources you hold on the first day of each month, so timing matters: once cash is spent, it stops counting as a resource the following month.3Social Security Administration. POMS SI 01150.001 What Is a Resource Transfer Spending a large lump sum fast enough to stay eligible takes planning.
Medicaid asset limits vary by state and by program. For Medicare Savings Programs, the individual resource limit is $9,950 in 2026.4Medicaid.gov. January 2026 SSI and Spousal CIB Some states also apply a look-back period for asset transfers tied to long-term care eligibility, so giving away or spending down an advance could trigger a penalty period that delays coverage.
If you rely on any means-tested benefit, talk to a benefits planner or elder law attorney before signing. Losing ongoing coverage often costs more than the advance is worth.
Cheaper Ways to Get Cash Sooner
Before giving up 20% to 50% of your share, check whether a less expensive option is available.
Ask the Probate Court for a Preliminary Distribution
Many states allow beneficiaries to petition the probate court for an early partial distribution before the estate formally closes. You file a petition and show the court that the distribution can be made without harming creditors or other beneficiaries. The court may require a bond, which protects the estate if unexpected debts surface later. Your main costs are attorney fees for the petition and the bond premium — no percentage fee.
Availability and procedure vary by state, so ask the estate attorney whether this is realistic in your case. Courts are more likely to approve the request if the estate has already paid its major debts and the creditor claims period has expired.
Personal or Family Loans
If the need is short-term, a personal loan from a bank, credit union, or family member can cost far less in total dollars than surrendering 30% or more of your inheritance. Even a personal loan with a high interest rate often works out cheaper. A written family loan secured by your expected inheritance keeps the transaction in the family and avoids third-party fees.
A Loan from the Estate Itself
In some cases, the personal representative can make a loan or advance directly from the estate to a beneficiary, depending on the will and state law. This is less common and usually requires court approval, but it’s worth raising with the estate attorney if the estate has enough liquid assets.
Each alternative has its own requirements, but each preserves more of your inheritance than a typical advance. Weigh the urgency of your need against the long-term cost before you decide.