How Probate Loans Work and What They Can Be Used For

a red piggy bank on a wooden surface

An inheritance loan, commonly known as an estate loan, probate loan, or trust loan, allows the heir(s) of an estate containing real estate to borrow against it. Such loans are essentially home equity loans on inherited property. Probate can be a lengthy process during which heirs can’t directly access their assets.

Taking out an inheritance loan allows you to get a portion of your inheritance faster. A probate lender makes an immediate payment to the heir in exchange for the inheritance after probate. You can think of probate loans, also called inheritance advance, inheritance funding, and probate advance, as an advance on inheritance.

Inheritance Funding Basics


Inheritance funding is a quick way to access the value of the funds or assets of a probate estate. There are two main types of inheritance advances—either an advance on your inheritance or a loan that uses inheritance as collateral. These aren’t offered by traditional lenders, which means your credit score won’t be a factor when applying as there are no monthly payments to be made.

How do probate loans work?


The probate lender evaluates the estate and how much you will inherit to determine if they will be able to make money. If so, you’ll be offered an immediate payment for less than the full inheritance in exchange for the right to receive the full amount upon the completion of the probate. Probate lending gets you the funds sooner, but for less than you would get if you wait out the process.

Managing a probate estate is difficult when there’s a lack of liquidity in the estate. A lack of liquidity to probate the estate often means that estate assets have to be sold and the beneficiaries will have less to inherit. Taking out a probate loan can help with estate expenses, administrative expenses, taxes, legal expenses, and more.

HCS Equity works directly with the trustees or executor of the estate to create liquidity and ease the financial burden of the probate process. This lender offers competitive interest rates and terms, interest-only payments, and no need for a personal guarantee to receive funds within 7-10 business days. Having access to emergency funds through a probate loan helps stop foreclosure, cover property taxes, medical expenses, property maintenance and repair, and disposition.

The Benefits of Probate Loans


There are several common reasons that beneficiaries choose to pursue inheritance loans. The probate process is often expensive and heirs are responsible for paying legal fees, settling the estate’s debts and property taxes, maintaining the estate, or covering the costs of repairs and funeral costs. Not all beneficiaries want to inherit real estate—some would prefer cash payment. Probate loans can be used to buy out other heirs’ share of a real estate inheritance. Inheritance is a useful way to pay off personal debts as soon as possible to avoid accumulating more debt. An inheritance loan can be used to cover day-to-day expenses during the lengthy process of probate.

It’s not uncommon for heirs to sell their real estate inheritance. Like any home sale, the best way to get top dollar for your listing is to complete maintenance and repair projects that will improve the aesthetics and increase the property value. A bathroom renovation or remodel is a great way to add value to one of the most used rooms in a home.

CMK Construction has years of experience providing bathroom remodeling services for homeowners who need to expand their space or give it a fresh look. This custom bathroom contractor in Tampa uses premium products to add value and functionality to your master bathroom. Whether you want a new vanity, bathtub, floors, or cabinets, CMK Construction has the expertise to deliver a quality custom bathroom remodel.

The first step in determining if a probate loan is right for you is to speak with a probate attorney to determine your eligibility and whether it’s the right move for your situation.

Isla Leighton is the Founder & Editor behind Rock Salt Plum, a digital community curated to deliver an accessible yet sophisticated lifestyle standard. The inspiration behind the brand’s creative drive and style influence is mirrored in Isla’s day-to-day experiences and passion for beautiful design, personal growth, and elegant lifestyle content.

Thank you for contacting Rock Salt Plum!

We will be in touch soon! Use the logo on the pop-up for the contact form as well.