Can a California Beneficiary Receive an Inheritance Before Probate Ends? 4 Options Explained

Waiting for an inheritance after a loved one’s death can be frustrating, especially when you are facing bills or other financial pressures. Probate in California can drag on for months or sometimes even longer. But the good news is that beneficiaries may have options for accessing money before probate officially closes. However, these options aren’t automatic, and each comes with its own rules and trade-offs.

Here are four possibilities to consider:

●   Request a Partial Distribution

Depending on the situation, an executor can seek the probate court’s approval to distribute a portion of an inheritance ahead of time (Probate Code §§ 11620-11624). For the court to accept this request, it needs to be convinced that there are enough assets in the estate to settle any valid debts, taxes, and other claims. If the court gives the go-ahead, you could get some of your inheritance before the probate process wraps up.

●   Get a Personal Loan

A personal loan is another way to obtain money while waiting for an inheritance in California. You could apply for a loan through a bank, a credit union, or an online lender. The lender will consider factors such as your income, employment, and credit score before deciding whether to approve the loan.

A huge advantage is that you can get cash quickly if you qualify. But keep in mind that the inheritance itself doesn’t guarantee approval, and you’re still responsible for paying back the loan. Interest and monthly payments begin before the probate process is finished, and if the estate takes longer to settle than anticipated, the borrowing costs can really add up.

●   Consider an Inheritance Advance

Some companies offer inheritance advances, meaning they give you money now and collect their repayment from your share of the estate later. Approval is usually based on the size of the estate and your status as a beneficiary, not your credit.

Unlike traditional loans, you usually won’t make monthly payments, and with a non-recourse structure, you aren’t personally responsible if the estate ends up worth less than expected.

The tradeoff, though, is that you’ll get less than the full value of your inheritance, since the company keeps a sizable fee for offering early access. You should carefully review the agreement and understand the total cost before signing.

●   Borrow From Family or Friends

Some people turn to people they trust for a short-term loan. This is simple and might cost little or no interest.

But it’s important to remember that borrowing from loved ones can get awkward, especially if probate takes longer than expected. Before accepting money, consider putting the repayment terms in writing so everyone understands the arrangement.

Which Option Should You Choose?

The best route depends on your situation, the urgency of your needs, and the estate’s financial situation. Partial distributions require the court’s approval but tend to be the least expensive. Loans and advances are quicker but come at a price, either in interest or by reducing what you eventually receive.

If you’re unsure, talk to a California probate attorney. They can walk you through your options, explain what’s possible in your case, and help determine what makes the most sense for you.

Contact The Probate Guy

If you have questions about your inheritance rights, contact the dedicated California probate attorney, Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.

Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.

Source:

leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PROB&division=7.&title=&part=10.&chapter=1.&article=2.