How to Borrow on Your Inheritance

by Jennifer Williams Google
    You can take an advance against your inheritance.

    You can take an advance against your inheritance.

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    Probate can be a long, drawn-out process, especially if the estate has to file a federal income tax return and wait for a return letter from the Internal Revenue Service approving the close of the estate. What happens if you cannot wait that long for access to your inheritance? For some, their inheritance is needed to provide basic necessities and to contribute to basic living expenses. Others need inheritance money to maintain estate assets. In these situations, you may be able to get an advance on your inheritance in the form of an inheritance loan.

    Step 1

    Compare how much you need to how much you stand to inherit and decide if borrowing against your inheritance amount is really worth the interest and tax consequences. Consult the estate's personal representative or a tax lawyer for guidance on tax consequences and recommendations for lenders that specialize in inheritance loans in your state.

    Step 2

    Contact inheritance lenders that operate in your state and ask for details about their standard terms. Pay special attention to the interest rates each charges. Choose a lender you're comfortable with, preferably the one that charges the least amount of interest.

    Step 3

    Gather the lender's required documentation as proof of your inheritance. This may include a copy of the will, an official death certificate, copies of the letters of administration issued by the probate court officially opening the probate proceeding and appointing the personal representative, a certification of the amount of your inheritance from the personal administrator and your identification.

    Step 4

    Fill out the loan application, which includes an assignment of the rights to the amount of your inheritance plus the lender's fee. Submit it with any required supporting paperwork and wait for your answer.

    Things Needed

    • Copy of the will
    • Death certificate
    • Copy of the letters of administration
    • Certification of your inheritance amount from the estate personal representative

    Tips & Warnings

    • Expect the lender to file a claim with the estate based on the assignment of inheritance rights you executed as part of the loan paperwork. Repayment is made directly from the estate to the lender upon close of probate.

    About the Author

    An attorney for more than 18 years, Jennifer Williams has served the Florida Judiciary as supervising attorney for research and drafting, and as appointed special master. Williams has a Bachelor of Arts in communications from Jacksonville University, law degree from NSU's Shepard-Broad Law Center and certificates in environmental law and Native American rights from Tulsa University Law.

    Photo Credits

    • Stockbyte/Stockbyte/Getty Images