How to Get an Advance on Your Inheritance

Co-authored by Jonathan DeYoe, CPWA®, AIF®

Last Updated: January 31, 2023 References

When someone dies, their assets aren't immediately distributed to their family members and heirs. Rather, a complicated legal and financial process begins. The result is that it takes an average of seventeen months for assets to be distributed.^{[1]
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Research source} Meanwhile, recipients of the estate have to wait on money that is rightfully theirs, money that can be used to improve their financial situations. If you are in this position, one option to get your money faster is getting an advance on your inheritance. Getting this type of advance can be as easy as applying for any other type of loan, assuming you qualify.

Part 1

Part 1 of 3:

Determining If You Can Assign Your Inheritance

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Speak to a lawyer that specializes in inheritances and trusts in order to see if you can assign your inheritance. In some cases, state laws or the wording of the deceased's will may prevent you from assigning your inheritance (that is, transferring it to an inheritance lender in exchange for an advance). An easy choice would be the administrator in charge of the estate (if they are an attorney).
- In some cases, geographical issues may complicate estate assignment. For example, estates held in other countries generally cannot be assigned. However, those held in different states are usually able to be assigned.^{[2]
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Make sure you are receiving enough inheritance to qualify for an advance. The amount required varies between lenders, so check with several in your state to see if you are receiving enough. For example, a lender may require a minimum inheritance value of $17,000.^{[3]
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Research source} This amount is set to ensure that the advance is worth their trouble.
- Even though the amount inherited is considered, inheritance advance lenders don't take your credit score into consideration. So don't worry if you don't have stellar credit, you will still get the advance if the rest of your information checks out.^{[4]
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Consult with an attorney or financial professional before proceeding. Speak to the estate administrator or another legal or financial professional about the potential cost and tax consequences of your assignment. Your advance will result in your getting significantly less money than your inheritance would give you. The professional you discuss this with can give you specific information on exactly how much less you will receive.^{[5]
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Alert the estate attorney or the administrator for the person who passed away that you are getting an assignment. Call them as soon as you have decided to assign your inheritance. This will allow them to properly allocate your inheritance funds so that they will be distributed to the lender.
- This has to be done because the lender's right to your inheritance is moved to the "end of the line" for receiving funds from the estate. This means that they will be paid after all of the other heirs on the estate receive their payouts.^{[6]
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Part 2

Part 2 of 3:

Assigning Your Inheritance For an Advance

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Gather the necessary documents. The lender will require extensive documentation of your inheritance and the deceased's estate. The exact document required may vary between lenders. To get started, contact the estate administrator and request copies of the following documents:
- An official death certificate for the deceased
- A copy of the will
- Any probate court documents or letters
- Documentation of the appointment of the estate administrator
- A certification from the administrator of the amount of your planned inheritance
- Your identification (driver's license or similar)^{[7]
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Contact inheritance lenders in your area. Find companies that give advances on inheritances. You can do so by searching online for "inheritance advance" and the name of your state. There are numerous businesses that offer this type of loan. Ask several lenders for details about their interest rates and fees, or schedule free consultations with them.^{[8]
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- Alternately, you can ask an attorney or the estate administrator for lender recommendations.
- Once you have a few advance offers, compare the interest rates and terms from several lenders and pick the best one for your situation (usually the one with the lowest interest rate).^{[9]
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- Make sure to assess whether or not potential lenders are reputable by searching for reviews or accreditations for the lender online. Check out organizations like the Better Business Bureau to determine if the lender is reputable.^{[10]
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Make sure you are assigning your inheritance to the company and not taking out a loan backed by your inheritance. In this type of agreement, you are not technically taking out a loan, but giving the lender the right to receive your inheritance in exchange for a lump-sum payout right now. This also transfers the risk of not receiving inheritance (due to debts on the estate or other financial issues) to the lender. However, the increased risk gives the lender the right to charge you more for your advance. That is, this allows them to give you less on your advance that the value of your inheritance.^{[11]
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Fill out the loan application and submit. The agreement should include a passage assigning the rights to your inheritance to the lender. In addition, it should specify the exact amount of the advance you will receive and any fees charged by the lender. Read over this information carefully to determine whether or not it agrees with what you discussed with the lender previously. Ask questions, if you have them, before signing.^{[12]
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Receive your advance. If your loan application is approved, you will receive a notification of when you will receive your advance. Wait the specified length of time and it should be mailed to you. You are now free of having to wait for the probate court to release your inheritance.

Part 3

Part 3 of 3:

Considering Other Options for Quick Money

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Check if you eligible for a family allowance. In some case, the administrator is required to provide an allowance for living expenses to dependents of the deceased. This is generally only applicable to those who depended on the deceased for living expenses. Check with the estate administrator to investigate this allowance.^{[13]
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Ask the estate administrator for an advance. The estate administrator is qualified to give heirs of the estate advances on their inheritance if the estate can afford it. However, administrators are generally reluctant to do so, because unexpected expenses or debts may arise. If these unexpected costs did come up, the administrator might be required to ask for the advance back from the recipient. Ask your estate administrator for this type of advance, but be warned that they will likely say no.^{[14]
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- If the estate is large and easy to liquidate, your chances of getting an advance are better than if it's a smaller estate.^{[15]
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  Jonathan DeYoe, CPWA®, AIF®
  Author, Speaker, & CEO of Mindful Money
  Expert Interview. 15 October 2020.}
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Make a claim on the estate. Another way to get money from the estate before it is released from probate is by making a claim on the estate. This means that you are seeking recompense for money or items loaned to the deceased. If you have a legitimate the claim, the administrator may be forced to pay you.^{[16]
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Research source} Speak to an inheritance attorney if you think you have grounds to make a claim.
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Consider loan options outside of your inheritance. If you don't have any way to get a loan from this estate, you still have plenty of options for getting a bit of money quickly if you need it. You could get a traditional loan from a bank, use a your credit card to cover expenses, get a collateralized loan, or seek out personal loans.
- If you have bad credit, there are still several several options available to you.

Expert Q&A
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Question

Can I get an advance on my inheritance if my parents are still alive?

Jonathan DeYoe, CPWA®, AIF®
Author, Speaker, & CEO of Mindful Money
Jonathan DeYoe is a Financial Advisor and the CEO of Mindful Money, a comprehensive financial planning and retirement income planning service based in Berkeley, California. With over 25 years of financial advising experience, Jonathan is a speaker and the best-selling author of "Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend." Jonathan holds a BA in Philosophy and Religious Studies from Montana State University-Bozeman. He studied Financial Analysis at the CFA Institute and earned his Certified Private Wealth Advisor (CPWA®) designation from The Investments & Wealth Institute. He also earned his Accredited Investment Fiduciary (AIF®) credential from Fi360. Jonathan has been featured in the New York Times, the Wall Street Journal, Money Tips, Mindful Magazine, and Business Insider among others.

Jonathan DeYoe, CPWA®, AIF®

Author, Speaker, & CEO of Mindful Money

Expert Answer

Support wikiHow by unlocking this expert answer.

That's a very personal conversation you'll have to have with your parents. One thing to keep in mind is that the bulk of your parents' healthcare expenses are going to be in the last years of their lives, so be cautious about asking for money that they might need to use themselves.

Warnings

Avoid scams such as pay day loans. These loans offer fast money in exchange for exorbitant interest rate and can quickly trap you in a cycle of increasing debt.

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