Unlocking Your Non-profit’s Gift That’s Tied Up In Probate

The purpose of the webinar is to provide information for non-profits that have gifted  donations tied up in probate court. We go through how ProbateCash allows those non-profit companies to access those cash gifts today.

Key Takeaways

• ProbateCash can provide upfront funding to non-profits waiting on a charitable bequest tied up in probate or trust administration.
• The advance is not a loan: there is no interest rate, no collateral, and non-recourse repayment (repaid only from the eventual gift).
• ProbateCash reviews the probate case and can often determine an advance amount within one to two business days.
• If the estate ends up unable to pay the charitable gift (for example, the assets are less than expected or the will is invalidated), the non-profit typically does not have to repay the advance.
• Taking an advance does not harm other beneficiaries and does not create liability for the estate attorney.
• Advances can support non-profits facing immediate cash needs, especially when traditional financing is not available.
• ProbateCash can work with eligible county departments if they are entitled to funds delayed by probate.

Full Webinar Transcript

Molly Driscoll:
Welcome, and thanks for joining today’s session, Unlocking Charitable Gifts Tied Up in Probate, a webinar presented by Probate Cash. I’m Molly Driscoll, and I’ll be your host today.

Our presenter today is a professional with extensive experience in providing cash advances to individuals and organizations awaiting inheritance or bequest payouts. Marc Harris has worked in the specialty finance industry for 25 years and has been involved in purchasing over one hundred million dollars of assets. Many of those purchases required court hearings, and Marc has attended or appeared as counsel in many of them.

Marc has spoken at numerous conferences and has been active in drafting model legislation adopted by many states. Born and raised in Tallahassee, Florida, Marc earned his undergraduate degree from Florida State University and his law degree from Nova Southeastern University in Fort Lauderdale. He’s also very active in the community and serves on the board of a non-profit organization. Marc, his wife, and two children reside in Parkland, Florida.

Marc is here to speak about the relatively new business of purchasing interests in actively pending inheritance claims.

Marc, could you start us off with a quick overview of what Probate Cash does?

Marc Harris:
Sure thing. Thanks, Molly. First, welcome to everyone attending today, including the many representatives from non-profit organizations throughout the country.

We try to keep these webinars around 15 minutes so you can get useful information without losing half your day.

I also want to mention that I serve on the executive committee of a non-profit and fully appreciate the balance between ongoing fundraising and budget planning, compared to the meaningful work of serving your community.

Non-profits can’t achieve their missions without donors. Some donors give monthly or annually, but today we’re focusing on gifts bequeathed through a will to your organization.

Let me start by briefly explaining the probate process, what Probate Cash does, and how we might be another tool available to your organization. We’ll take questions at the end, but feel free to add them in the chat at any time.

When someone dies, that person either does or does not have a will. In most cases, a probate case must be opened in court. For our purposes today, we’ll assume there is a will and the decedent included a financial gift to your non-profit organization.

Unlike television shows, there is typically no public reading of a will where beneficiaries immediately walk away with distributions. Probate exists so creditors can file claims against the estate and other interested parties can challenge the will for reasons such as fraud, duress, or lack of capacity.

That process takes time and often involves legal fees paid by the estate. The estate may also need significant time to sell assets—such as real estate—before it has funds available to pay beneficiaries, including your organization.

Marc Harris (continued):
Probate Cash can provide upfront money to a non-profit against a portion of the anticipated charitable gift that was bequeathed to it.

We begin by reviewing the probate case and determining the amount we can advance, often within one to two business days.

Probate Cash assumes the risk and waits until the estate assets are distributed. If, for any reason, there is not enough money in the estate for the non-profit to repay us, then Probate Cash will not be repaid. Any such shortfall does not affect other beneficiaries, as long as the estate has funds to pay them according to the probate process.

Simply put: the fact that your non-profit agrees to an advance from us will have no adverse effect on the estate, its beneficiaries, or the probate attorney.

In fact, many probate attorneys now refer anxious heirs to Probate Cash because there often isn’t another option besides waiting months—or years—for the probate process to conclude.

Molly Driscoll:
So the non-profit will be charged a fee for the advance. Can you explain how the fee structure works?

Marc Harris:
Yes. First, I want to reiterate that Probate Cash does not charge an interest rate because these advances are not loans.

They are not loans for two main reasons: one, the advances are not secured by property or other collateral; and two, Probate Cash has no recourse against the customer—in this case, the non-profit—if we are not repaid.

We assume the risk of non-repayment. For example, if it turns out your non-profit would never have received anything from the estate because the assets were significantly less than expected, the non-profit keeps the advance it received and Probate Cash does not demand repayment.

Molly Driscoll:
What can non-profits do to determine whether an advance is the right option?

Marc Harris:
These advances are not ideal in every situation. I hope not every organization on this call will need our services.

If your non-profit is flush with reserves and can obtain emergency funding through traditional methods—such as a bank or institutional financing—I would recommend you proceed that way.

But if your organization is more likely to face immediate cash needs and does not have access to traditional funding, then we can be an additional tool in your fundraising toolbox.

A non-profit often looks more attractive to donors and foundations when it demonstrates cash on hand. One option available to organizations is knowing that pending bequests tied up in probate can sometimes be partially liquidated if needed.

If you don’t need cash, that’s ideal. But if you do have an immediate need, your organization should know Probate Cash is an available option.

Molly Driscoll:
Can Probate Cash advance money when the inherited funds are due from a trust that isn’t in probate court?

Marc Harris:
Yes. Probate Cash can offer immediate funding to non-profits waiting for a charitable gift, whether that gift is tied up in probate court or being administered through a trust.

Molly Driscoll:
We’re at the 15-minute mark, so as promised, Marc will stay on to answer some questions. If you need to leave now, we’ll send a link to the recording, along with the questions and answers.

If you want to ask a question offline, please contact Marc Harris at 561-476-0018 or email marc@probatecash.com.

First question: what if the will gets thrown out? Does the organization have to repay the advance?

Marc Harris:
If we’ve given an advance to an organization and the will is later invalidated—for example, due to fraud, duress, or lack of capacity—then no, the organization would not have to repay the advance.

The only exception would be if we discovered the organization was involved in wrongdoing, which is highly unlikely.

Molly Driscoll:
Another question: can you work with county departments?

Marc Harris:
I would need a little more information, but the bottom line is: if a county department is entitled to a gift tied up in probate, then yes.

We do work with county departments, but there may be details specific to that situation. I’m happy to continue that conversation offline.

Molly Driscoll:
Next question: how do I start a program to receive more bequests through wills from donors?

Marc Harris:
That’s a question many non-profits would like answered. It’s a natural part of fundraising. For the non-profit I work with, the conversation often happens with donors—both potential and existing—around legacy planning.

It’s a matter of asking donors whether they’ve considered what kind of gift they want to leave behind and what legacy they want to create.

Molly Driscoll:
It looks like we covered all questions. If you think of something later, you can contact Marc directly at marc@probatecash.com or 561-476-0018.

Thank you again for joining us, and have a great day.