Info for Attorneys
Probate Advance Attorney Information
Information for Attorneys
Inheritance Funding Company (IFC) offers probate advances to heirs of probate estates in exchange for a discounted priority assignment. IFC’s probate advances are not loans; the inheritance advance does not have an interest rate or a payment schedule of any kind.
The cost of an IFC probate advance is based upon (i) the complexity of the estate, (ii) the nature and status of any real property involved, (iii) the expected timetable for distribution, and (iv) the amount of the advance. As a rule of thumb, IFC typically pays anywhere from 60 to 80 cents on the dollar. The assignment is for a flat amount that does not fluctuate with time, no matter how long it takes for the estate to distribute.
The assignment is against the individual heir’s share of the estate, not against the estate as a whole. IFC files the assignment with the probate court and serves a copy on the estate attorney and personal representative. Satisfying the assignment only requires a line or two on the Petition for Final Distribution. As a priority assignment, IFC’s assignment is satisfied before any funds are distributed to the heir.
In California, probate advances are regulated by Probate Code Section 11604.5.
Advantages of IFC’s Advances
An inheritance cash advance can help heirs who are in difficult financial situations and can also be helpful to the estate and the estate’s attorney.
An advance is a useful tool when the estate lacks liquid assets yet requires funds to maintain real property. Personal representatives commonly obtain advances to make both repairs and cosmetic improvements to increase the value of the real property. Advances are also obtained for mortgage payments, cure defaults, and to cover the costs of property insurance.
If an heir is living in the estate property and complicating its sale, a probate advance provides a convenient remedy. The heir receives the funds necessary to secure an apartment and to cover moving expenses, while the estate removes a common obstacle to the administration proceeding.
Probate advances also provide a way to keep anxious and persistent heirs from constantly contacting your office to inquire about the estate’s distribution and claiming inheritance money.
IFC’s Due Diligence
IFC’s application and due diligence processes are quick and painless for estate attorneys. A typical probate advance requires the following:
- A copy of the will, if one exists;
- A copy of the Petition for Probate or a document that shows the probate case number;
- A copy of the inventory, if one exists;
- A 2-5 minute conversation with IFC’s attorney to confirm the value of the estate, potential claims against the estate or offsets against the heir, and an anticipated timetable for distribution.
Provided that IFC is able to collect and confirm the aforementioned documentation and information, the probate advance process will only take a few days from start to finish.