Beware of Inheritance Advance Companies

Beware of Inheritance Advance Companies

By Patricia Louise Nelson of Two Spruce Law P.C.

In many of our probate matters lately, the beneficiaries are receiving advances on their inheritances from companies that offer such advances.  I ask you not to do this. I also encourage you to ask the beneficiaries of the estate you are administering not to take an advance.

As I understand it, the advance company will give the beneficiary about half of what the advance company expects the beneficiary to repay the advance company.  So, for example, if the inheritance advance company gives the beneficiary $10,000, they will expect to be paid $20,000 from that beneficiary’s share of the estate. The time it takes for an estate to be ready for distribution is about 7-9 months. That’s over a 100% rate of interest for a fairly short-term investment by the advance company. 

Not only are advances expensive to the beneficiary, they are also expensive for the estate, reducing the funds available for distribution to all the beneficiaries. Advance companies contact our office.  I have had advance companies tell me things that I allegedly said to them when I said no such thing.  I do not want my paralegals to get caught in a “he said, she said” situation. So, in our office only attorneys are allowed to speak with inheritance advance companies.

We charge our hourly rate for all communications with the inheritance advance companies, including reviewing documents and potentially preparing documents as a result of the advance. All of these activities result in time expended for the estate and therefore attorney fees payable by the estate.

Avoid the expense.  Wait up to 9 months. Receive your full inheritance without sharing it with an inheritance advance company.