10 Questions to Ask Before Signing a Probate Advance Agreement

Feature	Recourse Agreement	Non-Recourse Agreement
Liability	You may owe money if estate falls short	You owe nothing if estate can’t repay
Risk Level	Higher for the heir	Risk stays with the advance company
Repayment Guarantee	Required from your personal funds	Only from estate proceeds
Heir Protection	Limited	Full protection if estate value drops
Common Use	Less common	More common and preferred

What Exactly Is a Probate Advance?

• Definition: A probate advance gives you access to a portion of your expected inheritance before the estate officially settles in probate court.
• How it works: A third-party company provides cash upfront and receives repayment from your inheritance later.
• Key difference: It’s not a loan. There’s usually no interest, no monthly payments, and no credit checks. The company assumes the risk and waits for probate to wrap up.

Even though it sounds straightforward, it’s still a financial agreement. You’re selling a portion of your inheritance for early access to cash, and that tradeoff needs a second look before signing.

Are You Even Eligible for One?

• Basic requirements: You must be a named heir or beneficiary in a probate case that’s already been filed in court.
• Documentation: You’ll need to provide legal papers like the death certificate, will copy, probate filings, and a valid ID.
• Verification: Some providers require confirmation from the estate’s executor before final approval.

Eligibility depends heavily on the estate’s size and structure. If there are large debts, disputes among heirs, or unclear distributions, the provider might turn you down or offer less than expected.

How Much Money Will You Actually Get?

• Typical advance amount: Most companies offer 20% to 40% of your estimated inheritance.
• Determining factors: The total estate value, number of beneficiaries, and expected probate timeline all influence the offer.
• Example: If you’re supposed to receive $100,000, your advance might be around $25,000 to $35,000.

Keep in mind that the amount you receive now is always less than the portion the provider collects later. That difference is how they profit.

What Will This Really Cost You?

• Repayment difference: The company’s payout from the estate will be higher than the cash you receive today.
• Example: You receive $30,000 now, and the provider collects $50,000 later. That $20,000 gap is effectively your cost.
• Fee structures: Some companies charge flat rates, while others increase the cost the longer probate takes.

Always ask for a detailed cost summary before you sign. Some fees aren’t clearly disclosed unless you read the fine print.

How and When Do You Pay It Back?

• No monthly payments: You’re not personally making repayments over time.
• Settlement process: The provider receives payment directly from your inheritance once probate closes.
• Executor involvement: The estate’s executor handles the transfer and ensures the company gets paid before you receive any remaining balance.

Some agreements are labeled “non-recourse,” meaning you don’t owe anything if the estate’s final value falls short. Others are “recourse,” which means you could be liable for the shortfall. Always clarify which one applies to you.

Will It Affect the Other Heirs?

• Limited direct impact: Other heirs typically don’t lose money because of your advance.
• Possible friction: Your advance might delay the process, especially if the executor or court needs extra paperwork or approval.
• Family dynamics: If tensions already exist among heirs, this move might raise eyebrows.

Even if it’s a personal decision, it helps to be mindful of how it fits into the larger estate process.

Is It Legally Binding—and Should a Lawyer Review It?

• Yes, it’s binding: Once you sign, you’re entering into a legal agreement.
• Why legal review matters: An estate attorney can flag risky clauses, hidden fees, or misleading terms.
• Watch for: Arbitration clauses, broad repayment conditions, and vague fee descriptions.

Legal guidance can protect your long-term interests. Spending a bit upfront for a review could prevent thousands in lost inheritance.

Are There Better Alternatives to Consider?

• Estate loans: These are formal loans secured by the estate and may offer more favorable repayment terms.
• Personal loans: If your credit is strong, you may get a personal loan with lower effective costs.
• Waiting it out: Depending on the estate’s progress, you might receive your inheritance sooner than expected without giving up a portion of it.

A probate advance is one option among several. Don’t assume it’s your only route forward.

How Long Does It Take to Get the Advance?

• Fast approvals: Many companies review applications within 24–72 hours.
• Funding timeline: You could receive funds in 3 to 7 business days, depending on how fast documents are provided and the executor responds.
• Delays: Missing paperwork or slow responses from the estate’s legal team can slow things down.

Be wary of companies that promise same-day cash without verifying your legal documents. That’s usually a sign of a shady operation.

What Happens If the Estate Comes Up Short?

• Non-recourse agreements: You owe nothing out of pocket if the estate’s final value can’t cover your share.
• Recourse agreements: You could be responsible for repaying the shortfall from your personal funds.
• Why it matters: A falling real estate market, unexpected taxes, or unpaid debts can eat into estate value quickly.

Ask directly whether your agreement is recourse or non-recourse, and get the answer in writing. That one detail makes a huge difference.

Conclusion

Probate advances offer quick access to inheritance funds, but they come with serious terms that shouldn’t be ignored. You’re giving up a portion of your future inheritance in exchange for immediate cash, and that’s not a light decision. Take time to read the agreement, understand all repayment conditions, and ask about hidden fees. Talk to a probate attorney before signing anything, and don’t hesitate to explore other options that may give you more control over your finances in the long run.

Key takeaway: Before trading a portion of your inheritance for early access to cash, make sure you understand the full cost, the legal terms, and whether better financial options exist.

FAQs

Can I get a probate advance before probate begins?

No, you must wait until the probate case is officially filed and you are confirmed as a beneficiary in the estate.

Does a probate advance affect my taxes?

Generally, no. Most advances are not considered taxable income, but it’s best to consult a tax advisor to confirm based on your location and situation.

Is it possible to get multiple advances on the same inheritance?

Yes, but only if there’s enough value left in your share of the estate. Each new advance goes through a fresh approval process.

What should I look out for in the agreement?

Watch closely for hidden fees, vague language, repayment clauses, and whether the deal is recourse or non-recourse.

Can an executor block me from getting a probate advance?

They may delay or refuse to cooperate, especially if the estate is complex or contested. Some states also require the executor’s approval.

About the Author

Claire Reed is a Probate Guide & Advocate who draws on her firsthand experience as an estate executor to help families simplify probate and explore inheritance funding options. She shares her insights through ProbateLoanFinder.com.