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Tom McClellan

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VIII                 Cash Advance on Inheritance vs Loan on Sale of Property 

If looking at this avenue, first explore borrowing funds from a parent, family member or own sources, it will be less expensive in the long run.

Inheritance funding and inheritance cash advances, two different types of ways to obtain cash quickly.  Selecting the right type will depend on the needs of the heirs and the asset types within the estate or trust.   Both ways are tools to get cash fast, usually 1-4 days.

If this is an option to you, ask your attorney or Realtor for referrals of reputable inheritance funding companies and sources.  It is suggested to get quotes from 2-3 different sources as each has their own requirements.  Consider having an attorney look over before you accept.

Cash Advance: (Not a loan, it’s an assignment in the estate) Valid in all 67 Florida counties.        

They buy all or a portion of the inheritance from the heir(s)/beneficiary in exchange for the cash.

They provide cash for up to 60-70% (depending on the company) of the inheritance and at closing of the estate are paid back usually 60-70% profit.  Example:  for $30,000. Cash, at closing they will receive $50,000. from the estate.

There usually no pay back of monthly payments, interest, upfront or additional fees.

The PR, heir or beneficiary requesting the cash usually does not have liability, credit check, cash flow proof or assets reviewed.

Situations where a cash advance maybe considered:

Estate Assets such has stocks, bonds, collections, personal property, but no Real Estate.

Need cash to cover costs of the estate before being disbursed

Have urgent personal debts or expenses or to avoid foreclosure.


Usually secured by Real Estate owned by the trust

            A mortgage will be recorded against the property and promissory note for repayment.

Usually a hard money lender which can include investors, pawn shops, finance companies, etc.

Interest rate can run from 8-12%

Points on the amount borrowed will range 2-4%  (Example 1 point = 1% of loan amount)

Also fees and cost will be charged for; title insurance, notary, recording fees, loan processing, document and underwriting.

            Situations where a Loans may be considered:

                        Estate/Trust that owns Real Estate with equity.

                        Funds needed ASAP to pay expenses, make repairs-improvements or avoid foreclosure. 

                        Heirs dividing interest in the real estate or buyout a sibling, etc.

A PR has the power to borrow money on behalf of the estate in order to make purchases, manage property and consolidate/pay existing debts. A bank or other financial institution can accept the PR's signature legally for approval on all loan documents.