What Banks Offer Inheritance Loans and How They Work

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So, you’re in the market for America’s best inheritance advance, and you’ll accept nothing but the guaranteed lowest rates, lightning-fast approvals, and same-day access to your money? Then TriMark is the inheritance loan company you need to call right now.

Inheritance loans allow you to access funds from an inheritance before the estate is settled. While traditional banks don’t offer these types of loans, there are some specialty lenders that provide this option. Here’s an overview of how inheritance loans work and where to get them.

What is an Inheritance Loan?

An inheritance loan, also called an estate loan or probate loan, allows you to borrow against the value of assets you are inheriting while the estate is still in probate.

These loans use your future inheritance as collateral. You receive a cash lump sum upfront, then repay the loan plus fees and interest once you receive your full inheritance.

Inheritance loans are usually secured loans, meaning the lender can seize inherited assets if you default. They typically come with higher interest rates than other types of loans since they are considered high-risk.

How Do Inheritance Loans Work?

Here are the basic steps for getting an inheritance loan

Determine your eligibility. Lenders usually require you inherit at least $15,000 in assets. The estate must be in probate but not finalized.
Gather documentation This includes the will, death certificate, letters of administration and amount of your inheritance.
Apply and get approved. The lender will review your documents then approve or deny based on eligibility criteria.
Receive loan funds. If approved, the lender will deposit the loan amount directly into your bank account, usually within a few days.
Make repayments. Once you receive your inheritance, you repay the loan principal plus interest and fees according to the repayment schedule.

What Types of Inheritance Loans are Available?

There are two main types of inheritance loans:

Cash advance: This gives you an advance on the amount you expect to inherit. You pay a flat fee rather than interest. Fees are typically 10-50% of the inheritance value.
Secured loan: With this option, you borrow against specific assets like real estate that you’ll inherit. Interest rates range from 8-10% or higher.

Some lenders use terms like “probate loan” and “estate loan” interchangeably for both cash advances and secured loans. Be sure to clarify which type of inheritance loan you are getting.

What Do You Need to Qualify for an Inheritance Loan?

Lenders have specific eligibility requirements to qualify for an inheritance loan:

Minimum inheritance value. Usually at least $15,000 in assets.
Estate in probate. The will must have entered probate but not been settled and closed yet.
Documentation. Death certificate, will, letter of administration, amount of inheritance.
Identification. Valid ID proving you are the named beneficiary.

Your credit score or history is generally not considered since inheritance loans rely on collateral.

Where Can You Get an Inheritance Loan?

Inheritance loans are offered by specialty lenders, not traditional banks or credit unions. Here are some options:

Inheritance loan companies. The most common place to get inheritance loan financing. Fast approvals.
Hard money lenders. Provide loans backed by real estate assets. Higher interest rates.
Online lenders. Offer quick inheritance loans through an easy online application process.

When choosing a lender, compare interest rates, fees, loan terms, funding time, eligibility criteria, and customer reviews.

Pros and Cons of Inheritance Loans

Pros:

Access funds quickly without waiting on probate court
Use for expenses like funeral costs, debts, bills, or real estate
Qualify even with bad credit

Cons:

Very high fees or interest rates
Risk losing inherited assets if you default
Extensive documentation is required
Not offered at traditional banks

Inheritance loans can provide fast cash but are one of the most expensive loan options. Weigh the pros and cons carefully.

Alternatives to Inheritance Loans

Here are some other options to access inheritance funds:

Personal loan – Unsecured loans based on creditworthiness. Lower rates than inheritance loans.
Home equity loan – Leverage your home equity if you have over 15-20% equity.
Advance from the estate – Ask the executor for an early advance.
Family loans – Borrow from family members at little to no interest.

Which Banks Offer Inheritance Loans?

Unfortunately, inheritance loans are not offered by traditional banks and credit unions. Some reasons include:

Banks want to minimize risk. Inheritance loans are considered high risk since probate can take months or years. There’s no guarantee the inheritance will come through.
Extensive documentation is required that banks may not be able to sufficiently verify.
The loan-to-value ratio is low. Banks make money through interest, but fees are charged instead of interest on some inheritance loans.
The market is filled by specialty lenders. Large banks don’t have much incentive to offer inheritance loans when other lenders already dominate the market.

So if you need funds quickly from an upcoming inheritance, you’ll have to go through a specialty inheritance loan company rather than a traditional bank. Make sure to compare multiple lenders to find the best rates and terms for your situation.

Bottom Line

Inheritance loans allow you to tap into inheritance funds before probate closes. They are offered by specialized lenders at high fees or interest rates, not traditional banks. Carefully weigh the pros and cons and explore alternatives before deciding if an inheritance loan is right for you.

Shop around and evaluate lenders based on eligibility requirements, rates, fees, and customer reviews. An inheritance loan gives fast access to cash but can be an expensive option requiring extensive documentation. Proceed with caution and legal guidance when using inheritance as loan collateral before probate finalizes.

Are You Inheriting Money?

Surprisingly, less than one-third of all households in the US inherit money. In fact, according to SmartAsset, between 70% and 80% of households will receive no inheritance at all.

So first things first. Are you an heir or designated beneficiary? Learn the difference.

And if you are, are you inheriting money or real estate?

To be eligible for borrowing against your inheritance, 3 criteria must be met:

The estate must be in, or be on the verge of entering into, probate
You must be a legal heir or designated beneficiary with documentation that verifies your status, and
You must have an expected minimum cash inheritance of at least $17,000; (this can be comprised of cash, or your share of any houses, buildings, property (real estate) that the estate intends to liquidate and distribute at the close of probate)

Benefits of Inheritance Loans

The probate process is often lengthy and complex, and can leave beneficiaries waiting months, and sometimes years, to receive their rightful inheritance.

And depending on the particular dates involved, the problem for a lot of people waiting to receive their inheritance money, is that A LOT can go wrong in “months, and sometimes years”.

America witnessed that fact most recently as the world shut down and our economy ground to a halt in 2020-2023 during the coronavirus pandemic that swept the globe.

This is where inheritance loans really shine.

An inheritance loan can deliver powerful options that provide beneficiaries with immediate access their inheritance money, right when they need it most, including:

Expedited Access to Funds One of the primary benefits of inheritance loans is the ability to gain expedited access to your inheritance money. By securing an inheritance loan, you can bypass the lengthy probate process and receive a portion of your inheritance as quickly as today. Whether you need to cover immediate expenses, invest in a business opportunity, or make meaningful life decisions, an inheritance loan can provide the financial freedom you need.
Financial Flexibility Inheritance loans offer beneficiaries the flexibility to use the funds as they see fit. Unlike traditional loans, there are no restrictions on how you can spend the money. Whether you want to pay off debt, invest in real estate, start a business, or even take a well-deserved vacation, an inheritance loan empowers you to make the financial choices that align with your goals and aspirations.
Eliminate Financial Stress Waiting for the probate process to finalize can be stressful, especially when you have immediate financial obligations. Inheritance loans provide much-needed relief by alleviating financial stress. With the ability to access a portion of your inheritance sooner, you can rest assured knowing that your financial needs are taken care of, allowing you to focus on what truly matters.

Probate Loans Vs Advance On Inheritance, Everything You Need To Know!

FAQ

Can I get a loan based on an inheritance?

While a probate loan may take several days or weeks to get approved and funded, it may be possible to get an inheritance advance in as little as 24 hours after approval. Inheritance advances typically don’t require any credit checks, which could make them a good option for borrowers with poor credit.

Are inheritance loans a good idea?

If you have a financial need and cannot afford to wait for probate, probate lending may be a viable option. You will get less money, but you will get the money when you need it.

What is the inheritance loan?

Inheritance loan: A type of loan that allows a beneficiary to receive a portion of their inheritance in advance, typically with high-interest rates and fees. Probate: The legal process after someone dies, in which their assets are distributed according to their will or state law.

What is the interest rate on an inheritance loan?

Inheritance loan rates and fees will vary by lender. Annual interest rates are usually in the range of 8-10%. Inheritance loan fees of 2-4 points (1 point equals 1% of the loan amount) are common.

What are the different types of inheritance financing?

Also called probate advances or inheritance cash advances, these are the most common types of inheritance financing. It’s essentially a cash advance on your expected inheritance amount, based on what you may inherit. It’s similar to a payday loan in that way.

What is inheritance funding?

Inheritance funding is a type of short-term financing that gives you access to the value of the funds or assets you’ve inherited before the deceased’s probate case is closed. There are many terms used to describe inheritance funding: inheritance loans, inheritance advances, estate loans, probate loans or probate advances.

Can you get inheritance financing at a bank or credit union?

You won’t find inheritance financing at a traditional lender, like a bank or credit union, either. Also called probate advances or inheritance cash advances, these are the most common types of inheritance financing. It’s essentially a cash advance on your expected inheritance amount, based on what you may inherit.

What can you do with an inheritance loan?

You can use your inheritance loan to pay for the funeral or other expenses. It can cover a mortgage payment or rent. The main disadvantage with an inheritance loan is the interest that adds up. If probate is delayed, you may pay more interest than you expected, which means you get less of your inheritance when it is distributed.