Inheritance Loans & Probate Loans — Rates, Risks, and a Better Option
Searching for an inheritance loan or probate loan? Here is what these products actually cost, who offers them, and why most heirs end up choosing a no-payment inheritance advance instead.
Inheritance Loan (Probate Loan): An inheritance loan, also called a probate loan or estate loan, is money borrowed against an expected inheritance while the estate is still in probate. True inheritance loans charge interest, require monthly payments, involve a credit check, and create personal liability. Very few lenders offer them. Most companies advertising inheritance loans actually provide inheritance advances, a different product with no interest, no payments, and no personal liability.
Can you get a loan on your inheritance?
Yes, but probably not the way you expect. If you search for an inheritance loan or probate loan, most of the companies you find do not actually lend money. Banks and credit unions almost never accept a pending inheritance as collateral because the amount and timing are uncertain until probate closes. What the inheritance funding industry offers instead is an advance: the company purchases a fixed portion of your expected inheritance and pays you cash now, with no interest and no monthly payments.
That distinction is not a technicality. It determines whether you make payments during probate, whether your credit matters, and whether you can end up owing money if the estate comes up short. This page explains both products so you can decide which one actually fits your situation.
How to borrow against a future inheritance
If you want to borrow against a future inheritance, you have three realistic paths. Each works differently and carries different risk.
1. A personal loan from a bank or online lender. The loan is based on your credit and income, not the estate. Rates in 2026 typically run 8% to 36% APR, and monthly payments start immediately. The inheritance itself is not collateral. You simply repay the loan when your distribution arrives. This works if you have strong credit and a short, predictable probate timeline.
2. An estate or trust loan secured by estate property. A small number of specialty lenders make loans to an estate or trust itself, usually secured by real property the estate holds. These are used in specific situations, most commonly to buy out a sibling's share of an inherited house or to preserve a property tax basis. Rates typically run 9% to 13% with points, and the estate makes the payments.
3. An inheritance advance. Not a loan. The funding company buys a portion of your expected share at a flat, fixed fee and is repaid directly by the estate when probate closes. No credit check, no monthly payments, and no personal liability. This is what most heirs searching for an inheritance loan actually end up using. Read exactly how an inheritance advance works.
Inheritance loan rates: what borrowing really costs
Because true inheritance lending is rare, there is no standard published rate. In practice, heirs who borrow pay the rates of whatever product they qualify for. Here is the realistic 2026 landscape:
| Option | Typical Cost (2026) | Monthly Payments | Credit Check | Personal Liability |
|---|---|---|---|---|
| Personal loan | 8%–36% APR, compounding | Yes, immediately | Required | Full |
| Estate / trust loan | 9%–13% + points, secured by property | Yes, paid by estate | Property-based | Estate property at risk |
| Inheritance advance | One flat fee, fixed on day one | None | None | None — non-recourse |
The trap with any interest-bearing option is the probate clock. You cannot control how long probate takes, and every extra month adds interest. A $25,000 personal loan at 15% APR costs roughly $3,750 in interest if probate closes in one year, and roughly $7,500 if it takes two. A flat-fee advance costs the same either way. For a full side-by-side breakdown, see our inheritance advance vs. loan comparison.
When a loan genuinely makes more sense
We sell advances, not loans, but honesty matters more than a sale. A loan can be the cheaper choice in three situations. First, if you have excellent credit and probate is nearly finished, a short personal loan may cost less than an advance fee. Second, if the estate needs to keep real property (for example, one heir keeping the family home), an estate loan secured by that property is often the right tool. Third, if you need only a very small amount for a few weeks, a low-APR credit option may be cheapest. For everything else, the fixed cost and zero risk of an advance usually win. Our cost guide shows real fee examples so you can compare both numbers yourself.
Why heirs choose the advance instead
Approval is based on the estate, not on you. Your credit score, income, and employment are irrelevant, and nothing appears on your credit report. You receive funds in as little as 24 to 48 hours, make no payments while probate runs its course, and if the estate distributes less than expected, the loss is ours, not yours. The fee is flat, fully disclosed before you sign, and never grows.
Get a free, no-obligation quote or call (800) 617-7260. We will tell you the exact flat fee so you can compare it against any loan quote you have.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. No attorney-client relationship is formed by your use of this website or by any communication with First Heritage Funding or its employees. Although members of our team are licensed attorneys, First Heritage Funding is an inheritance advance company, not a law firm, and does not provide legal representation or legal services. Nothing on this website should be relied upon as a substitute for professional legal or financial counsel. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. You should not act or refrain from acting based on information on this site without first consulting a qualified attorney or financial advisor in your jurisdiction.
Key takeaway: True inheritance loans are rare. Banks will not lend against a pending inheritance, and the companies advertising probate loans almost always provide advances instead. If you are quoted a rate, ask one question first: am I personally liable if the estate falls short? With a loan the answer is yes. With an advance it is no.
Inheritance Loan FAQ
Generally no. Banks and credit unions will not accept a pending inheritance as loan collateral because the amount and timing are uncertain until the court closes the estate. Heirs who borrow from a bank use an ordinary personal loan based on their own credit and income. The products marketed as probate loans by funding companies are almost always inheritance advances, which are purchases rather than loans.
There is no standard rate because true inheritance lending barely exists. Heirs who borrow personally pay personal loan rates, roughly 8% to 36% APR in 2026 depending on credit. Specialty estate loans secured by estate real property typically run 9% to 13% plus points. An inheritance advance charges no interest rate at all, just one flat fee fixed at signing.
It depends on your credit, the probate timeline, and your tolerance for risk. A loan means monthly payments starting immediately and full repayment even if the estate shrinks. It can make sense with excellent credit and a nearly finished probate case. If the timeline is uncertain or your credit is imperfect, a flat-fee, non-recourse advance removes both the payment burden and the risk.
A personal loan appears on your credit report and affects your score, and applying for one triggers a hard inquiry. An inheritance advance involves no credit check and is never reported to credit bureaus, because it is a purchase of part of your inheritance rather than a debt you owe.
A personal loan typically funds in a few days to two weeks after approval. Estate loans secured by property take several weeks. An inheritance advance is usually the fastest path, with funds wired 24 to 48 hours after the estate documents are verified, because no property appraisal or credit underwriting is involved.
You still owe the full loan balance plus interest. That is the core risk of borrowing against an inheritance: the debt is yours personally, and the estate's performance does not change it. An inheritance advance works the opposite way. It is non-recourse, so if the estate falls short, the funding company absorbs the loss and you owe nothing. Call (800) 617-7260 to talk through which structure fits your estate.
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