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Probate Loans in Texas (2025): What Heirs Need to Know Before Borrowing Against an Inheritance

If you’ve ever waited months—or even years—for an inheritance to come through probate, you know how frustrating the process can be. Funeral costs, property maintenance, unpaid bills… they don’t wait for the court system to catch up. That’s where probate loans (also called inheritance advances) come in.

But are they a smart move? What are the risks? And how do they actually work in Texas?

Let’s break it down.

What Is a Probate Loan?

A probate loan is a type of financing that gives heirs early access to a portion of their expected inheritance before probate is finalized. Lenders advance funds based on your anticipated share of the estate and are later repaid directly from the estate proceeds.

In Texas, this type of loan is often structured as a non-recourse advance—meaning the lender is only repaid from the estate, not your personal funds (in most cases).

Why Would Someone Get a Probate Loan?

Here are a few common reasons heirs consider probate loans:

• To cover immediate expenses (funeral costs, taxes, mortgage payments)

• To maintain or repair inherited property

• To resolve family buyouts or disputes

• To avoid waiting through lengthy probate (especially in contested cases)

Real-Life Example:

Your father passed away, and you’re set to inherit $100,000. But the estate is stuck in probate. Meanwhile, you’re paying out of pocket for property taxes and upkeep on his home. A probate loan could front you $30,000 now, and the lender would be repaid when probate wraps up.

Who Qualifies for a Probate Loan in Texas?

Each lender has its own criteria, but in general, you may qualify if:

• You are a named heir or beneficiary

• The estate has sufficient assets to cover the loan

• The probate case is already open or nearly ready to file

• All required documentation can be provided (will, death certificate, court filings)

How Much Can You Borrow?

Lenders typically offer between 10% and 40% of your expected inheritance. The exact amount depends on:

• The value of the estate

• How complex or contested the probate case is

• Whether there’s a will or other estate planning in place

Expect fees and interest to vary widely—some lenders charge flat fees, others use interest rates that can be quite high.

What Are the Pros of Probate Loans?

✅ Fast Access to Funds – Often within days

✅ No Monthly Payments – The loan is repaid at the end of probate

✅ Can Avoid Selling Assets – Useful if you need cash but want to keep the inherited property

✅ No Credit Check (in most cases) – Because repayment comes from the estate

What Are the Risks?

⚠️ High Fees – Interest and fees can eat into your inheritance

⚠️ Reduced Payout – You won’t receive the full value of your inheritance

⚠️ Unclear Repayment Terms – Some contracts can be confusing or overly aggressive

⚠️ Complications if Estate Shrinks – If taxes, debts, or legal issues reduce the estate value, you could owe more than expected

Is a Probate Loan the Same as an Inheritance Advance?

They’re similar but not identical:

• Probate loans typically involve formal loan agreements with interest and repayment from the estate

• Inheritance advances are more like a sale—you sell part of your inheritance to a funding company for less than it’s worth

Both have pros and cons, and both should be reviewed carefully.

Should You Talk to a Probate Lawyer Before Getting a Loan?

Absolutely. At The Lange Firm, we’ve seen heirs sign away large portions of their inheritance without realizing the full impact. Before committing to a probate loan, we can help you:

• Estimate your true inheritance value

• Understand the risks and fees involved

• Explore alternatives like temporary personal loans or partial distributions

• Negotiate better terms or avoid loans entirely

Final Takeaway

Probate loans can be a lifesaver in the right situation—but they can also eat away at your inheritance if you’re not careful. Before you sign any paperwork, take a breath, do the math, and get some legal guidance.

Contact The Lange Firm today to schedule a consultation. We’ll help you understand your options, protect your share of the estate, and move forward with clarity.