ProbateCash: Fact and Fiction

There can be lots of questions regarding the relatively new industry of inheritance funding. While not appropriate for all heirs, there are occasions where liquidity can be beneficial to an estate. Helping fix up the home for sale, for example, or meeting the immediate need of an heir. This webinar delves into many of these issues.

Key Takeaways

• Simplicity and Transparency: Before signing, heirs know exactly what they receive upfront and what they assign to Probate Cash later.
• Tailored Pricing: Fees are not one-size-fits-all; they are customized based on the estate’s complexity, asset types (cash vs. real estate), and the expected timeline to distribution.
• Non-Recourse Structure: If the estate fails to settle or the inheritance is wiped out by creditors, Probate Cash bears the loss, not the heir.
• Speed of Information: The more transparent the communication with the estate attorney, the lower the risk—and often the lower the fee—for the heir.

Full Transcript

Molly Driscoll: Welcome and thanks for joining today’s session, “Probate Cash: Fact and Fiction.” I’m your host, Molly Driscoll. Our presenter today is Marc Harris, an attorney with extensive experience in providing cash advances to individuals awaiting inheritance payouts. Marc has worked in the specialty finance industry for 25 years, involved in purchasing over $100 million in assets. He is an active member of the Florida Bar and has played a key role in drafting model legislation adopted by states across the country. Today, he’s here to speak about the business of purchasing interests in pending inheritance claims. Marc, what were your initial thoughts when you first heard about inheritance advances?

Marc Harris: Thank you, Molly. Even as a lawyer married to a lawyer, I initially didn’t appreciate how long and complicated the probate process could be. My first thoughts were: “Can you even do this?” and “Would people actually need it?” My background is in providing upfront cash to people who can’t wait for future payment streams. Inheritance funding fits that description perfectly—it provides money to heirs today who cannot wait for the months or years it takes for probate to conclude.

Molly Driscoll: Assuming everything goes as planned with the probate process, how does the personal representative know how much to send Probate Cash?

Marc Harris: Simplicity and clarity are key features. Before anyone signs anything, they know exactly what they will receive in upfront cash and what they are giving up later. Once we enter into a contract with an heir, we file that assignment directly within the probate case. Our court filing outlines the specific amount from the heir’s share that the personal representative must pay to Probate Cash at the time of final distribution.

Molly Driscoll: A question I see a lot is: How much do you charge?

Marc Harris: That is a reasonable question, but there is no one-size-fits-all price. We tailor each transaction to the specific facts of the estate. Fees depend on complexity: an estate that is all cash and near closing will have lower fees than one with a dozen properties, feuding heirs, and various third-party creditors.

Dollar amounts also matter—pricing for a $5,000 advance is different from a $500,000 one. Similarly, an heir one month away from distribution gets different pricing than one two years away. I always tell estate attorneys that open communication helps us provide a better deal. The more uncertainty we face regarding the status of property sales or court proceedings, the higher the risk, which can lead to higher fees. The more we know, the better we can do for the heir.

Molly Driscoll: Can the advance be repaid before the estate assets are distributed?

Marc Harris: Absolutely. There is no prepayment fee. Our transactions are fully transparent, and in many cases, if you repay early, the amount owed according to the terms of the transaction may even be less.

Molly Driscoll: If anyone has more questions, you can reach Marc Harris at marc@probatecash.com (with a “c,” not a “k”) or call 561-476-0018. Thank you for joining us today!

Marc Harris: Thank you, everybody. Take care.