Addressing The Cash Flow Issues Of Your Clients, Beneficiaries.. and even Your Firm!

In the intricate world of probate law, attorneys often face the challenge of securing retainers and managing cash flow effectively. ProbateCash offers a solution that ensures your practice never has to turn away business due to financial constraints. 

 Discover how your firm can benefit from innovative funding solutions in this enlightening discussion with Marc Harris, CEO of ProbateCash. 

Key Takeaways

• Bridging the Liquidity Gap: Most heirs are surprised to find they cannot access bank accounts or sell property immediately after a death. Probate Cash provides the “missing link” of upfront funding.
• Attorney Retainer Funding: Law firms can avoid turning away cases by having Probate Cash advance the retainer and filing fees directly to the firm on behalf of the beneficiary.
• Risk-Free for Heirs: Advances are strictly non-recourse. If the estate assets are devalued or a creditor wipes out the inheritance, the heir keeps the advance and Probate Cash takes the loss.
• Managing Expectations: By providing heirs with status reports and immediate funds, Probate Cash reduces the administrative burden on the personal representative and the law firm.

Full Transcript

Molly Driscoll: Welcome and thanks for joining today’s session, “Addressing the Cash Flow Issues of Your Clients, Beneficiaries, and Your Firm,” brought to you by Probate Cash. I’m your host, Molly Driscoll. Our presenter today is Marc Harris, an attorney admitted to the Florida Bar and a member of the Florida Bar’s Real Property, Probate, and Trust Law Section. Marc has over 25 years of experience in specialty finance and has managed the purchase of over $100 million in assets. Marc, can you start us off with the core mission of Probate Cash?

Marc Harris: Thank you, Molly. We have about 100 lawyers tuned in today from around the country. Simply put, Probate Cash advances beneficiaries upfront money while they wait for an inheritance that is tied up in the probate courts.

Most people unfamiliar with probate believe what they see on TV: the family gathers for a “reading of the will” and leaves the office with mansions and sports cars. In reality, heirs learn the hard way when they go to the bank and are told they aren’t the legal representative of the estate. They realize they need “Letters Testamentary” just to talk to the bank. After reality rears its ugly head—with property taxes, repairs, and bills piling up—beneficiaries find themselves in a cash flow crisis. That is the void we fill with a non-recourse advance.

Molly Driscoll: How does an advance from Probate Cash actually work?

Marc Harris: We can talk directly to the beneficiary or to the attorney representing them. The beneficiary completes a simple application, and our underwriters review the case filings. We can often fund the advance within one to two business days.

Our goal is to provide necessary liquidity while keeping the beneficiary engaged in the final result. We don’t purchase the entire inheritance. If the claims period is still open or there is litigation, we provide a modest advance. Once the case is closer to final distribution and we understand the exact numbers, we can provide a much larger amount. Our advances range from $3,000 to over $500,000.

Molly Driscoll: How can Probate Cash fund these so quickly?

Marc Harris: We are not a bank. We do not provide loans. We don’t charge an interest rate, we don’t do credit checks, and we don’t take collateral. Because our advances are non-recourse, we take the risk. If the home doesn’t sell for enough, if a creditor claim wipes out the share, or if a will is challenged, that is our loss. We only have recourse if the beneficiary commits fraud—like receiving the inheritance and then disappearing without paying us.

Molly Driscoll: How does an advance to one beneficiary affect the rest of the estate?

Marc Harris: It doesn’t. We enter into a contract strictly with that one beneficiary. It doesn’t affect the other heirs, the personal representative, or the law firm. We file the assignment agreement with the probate court so that the personal representative and the judge are aware of the transfer. When the estate assets are finally distributed, the personal representative simply pays the assigned amount to us from that specific heir’s share.

Molly Driscoll: How specifically can Probate Cash help law firms grow?

Marc Harris: This is why most of you are here. First, it stops the “angry phone calls.” Heirs often call the firm repeatedly asking why things are taking so long. By referring them to us, they get the cash they need, and we help manage their expectations by providing status reports on the case.

Second, we solve the problem of turned-down business. Many firms turn away clients because they can’t afford a retainer fee or filing costs. We will enter into an agreement with the anticipated personal representative and pay that advance directly to your law firm. Your firm gets paid upfront, and you don’t have to turn away a viable case because of a client’s lack of immediate cash.

Molly Driscoll: Are there laws that govern these inheritance advances?

Marc Harris: It is a relatively new field, but California has a leading statute: California Probate Code 11604.5. We follow the spirit of this law in every state. We file our assignments, prioritize consumer protection, and even conduct a recorded “closing call” with the beneficiary to go over the repayment terms. This ensures 100% transparency and protects the beneficiary from any misunderstanding.

Molly Driscoll: We have a question from the chat: “Can I be held responsible if I refer a client to you and you don’t get repaid?”

Marc Harris: Not at all. You are simply referring an option, much like you would a junk removal company or an appraiser. The contract is between us and the beneficiary. You can even leverage this to sign more clients by letting them know they can access their inheritance early.

Molly Driscoll: What if the inheritance is in a trust?

Marc Harris: Absolutely. We can work with trust beneficiaries, either through the trust itself or by assigning a portion of the beneficial interest.

Molly Driscoll: Does the executor have to approve the advance?

Marc Harris: Technically, no. We don’t need authorization from the personal representative to proceed with a beneficiary. However, we do talk to the estate attorney, and we file the paperwork so everyone is in the loop.

Molly Driscoll: Thank you, Marc. If you have more questions, you can reach Marc Harris at marc@probatecash.com or call 561-476-0018.