What is an Inheritance Advance?

Inheritance and Trust Advances are advances of cash collateralized by a pending inheritance which the distribution of which is being delayed in the probate system.  It is not unusual for estates to be in probate for a year or even up to three years, sometimes causing duress to those beneficiaries waiting for cash distributions.  With the assistance of an Inheritance Purchasing Company, a portion of the future inheritance can be pledged to secure an immediate cash advance.

Inheritance Advances are little known by many Cash Flow Consultants and represent an excellent area for marketing with little or minimal competition.  Additionally, commission payouts here can be substantial since the discounts can be considerable.  For institutions, this is an area of high investment risk since estate values and circumstances can change rapidly.  A distribution from an estate, for example, can be challenged by an ex-spouse, liened by the IRS, or many be attacked in many other ways.  Estates containing investment securities can suffer greatly in stock market declines.

Inheritance advances will be approved by the estate’s attorney so networking with attorneys whose practice involves “Family Law” is important.  These are professionals that can send a great deal of business your way when the cash needs of beneficiaries are critical.  You should learn how to provide a sample of an inheritance advance using your financial calculator.  We have posted an example of that calculation in the calculator training area.

Marketing for Inheritance Advances

As with most Cash Flow product areas, most of your leads for inheritance advances will come form your networking efforts and Facebook / LinkedIn relationships.  You can get a little more “proactive” in this area.  Here’s how.

  • Research the probate files at the Clerk of the Court.
  • Read the obituaries.  Family members of recently deceased can be excellent prospects since they have just entered the probate system.
  • Place classified ads under the category of “Money to Lend” or similar.  Title your ad with “Cash to Heirs“, “Cash for Inheritances” or something similar

Make certain you align yourself with an institutional participant in the inheritance advance area early on.  Many will share excellent marketing tips to assist you in producing in this area of opportunity.