Society often has no pity for the poor heir. Our heir or heiress is often someone who made poor life choices, is broke, and yet is awaiting a large inheritance. If he or she is truly and heir, and is awaiting a monetary inheritance, he or she could be eligible for an inheritance advance. Also called an heir advance, inheritance advance loans are a way an heir can monetize his inheritance now, and worry about repayment only when his inheritance comes do.
How does an inheritance advance work? An inheritance advance works when you decide you need money now. You contact one of a handful of companies that offer an inheritance advance, and then negotiate an interest rate. These inheritance or trust lenders then contact the necessary attorneys or trustors that have secured the will. These attorneys often trust these companies because of their reputation. Ultimately, you get your loan.
These advances can take on a few forms. Some come as fiduciary mortgages to buy a house. Others come as straight up inheritance loans. Whatever the payout is, you are liable for payback only when the inheritance comes due.