Quick Answer: Understanding the Cost
The cost of an inheritance advance is typically a fixed fee based on the amount of the inheritance you choose to sell. While there is a service fee, many heirs find it is less expensive than the “cost of waiting.” When an estate is tied up in probate for 12–24 months, beneficiaries face significant financial risks, including market volatility (stocks or home values dropping), ongoing probate fees (which can consume 5-10% of the estate), and the emotional toll of delayed closure. An advance provides immediate liquidity, locking in your share’s value today.
Factors that Offset the Service Fee:
- Asset Protection: Avoid losing value if the stock market or real estate market crashes during probate.
- No Interest: Unlike a loan, there are no compounding interest charges or monthly payments.
- Probate Savings: Accessing funds early can help you pay off high-interest personal debt, potentially saving you more than the advance fee.
- Risk Transfer: If the estate assets decrease after you receive your advance, the funding company—not you—absorbs the loss.
When considering an inheritance advance, the first question most people ask is: “What is this going to cost me?” It’s a fair question. While there are fees associated with an advance, it is vital to compare those fees against the substantial “hidden costs” of letting an inheritance sit in the probate court for years.
1. The Risk of Market Devaluation
Probate can last anywhere from 9 months to over two years. During that time, the value of the estate’s assets—like stocks, bonds, and real estate—is at the mercy of the market. As seen in past economic downturns, an estate can lose 30% or more of its value in just a few months. By taking an inheritance advance, you effectively “cash out” a portion of your share at its current value, protecting yourself from a future market crash.
2. The Drain of Probate Fees
Many heirs don’t realize that simply waiting for probate is expensive. Between court costs, attorney fees (often 2–4% of the estate), appraisers, and executors, it is common for 5% to 10% of the total estate to vanish into administrative costs before a single dollar reaches the beneficiaries.
3. Legal and Contingency Risks
No probate case is guaranteed. Wills can be contested, new creditors can emerge, or legal disputes can drag on, increasing the legal fees charged to the estate. When you receive an advance from InheritNOW, we take on that legal risk. If the estate value is depleted by unexpected legal battles later on, you generally do not have to pay back the difference.
4. The Emotional Cost of Delay
Dealing with the loss of a loved one is hard enough without the added stress of financial uncertainty. The “emotional cost” of waiting 18 months for a check can be overwhelming. For many, the peace of mind that comes with receiving funds in 48 hours is worth the service fee, allowing them to focus on grieving and moving forward with their lives.
Is it right for you? Every situation is unique. If you have pressing financial needs or want to hedge against market risk, an inheritance advance is a powerful tool to secure your financial future now.
Frequently Asked Questions
Fees are not calculated like interest. Instead, they are based on a fixed reassignment amount determined by the size of the advance and the projected length of the probate process. You will always know the exact cost upfront before signing any agreement.
No. Because an inheritance advance is not a loan, your personal credit history and income do not play a role in the pricing. The fee is based strictly on the risk and value associated with the estate assets.
While a bank loan may have a lower interest rate on paper, it requires monthly payments and personal liability. An inheritance advance is often preferred because it carries no personal risk, requires no monthly payments, and the fee is paid by the estate, not your bank account.