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Probate Funding: A Useful Option for So Many (Part 1 of 4)

The following is a contributed article by Steven D. Schroeder, Esq., General Counsel/Sr. Vice President at Inheritance Funding Company, Inc. since 2004. 

There have been a few recent articles written on the topic of Probate Advances.[i] Probate Advances are available because a handful of companies are willing to assume a risk and provide funding in return for a partial assignment of a beneficiary’s interest in an Estate, and to a lesser extent Trust Proceedings. One critic has conflated Assignments to Loans without a fair analysis of the many differences between the two legal maxims.[ii] This 4-part series expands upon those differences and provides a legal and practical perspective as to why Probate Advances are a useful option for so many.

Why is Probate Funding Needed?

Probate Funding is growing in importance due to the increasing percentage of the population (i.e. baby boomers) who die annually and have their Estates and/or Trusts go through probate administration. In theory, the process of distributing a Decedent’s estate should not be complicated. But in practice, administration is rarely quick and easy. Even simple or uncontested Probate administrations take no less than eight (8) months to a year to finalize, while the vast majority of administrations of Probate or Trust Estates take much longer.

Due to funding and short staffing issues, many Courts set hearings months out even on uncontested petitions. Quite often, because of questions relating to the admissibility of a Will, the location of intestate heirs, and/or questions regarding those who may be an interested party, it can take a year just to have someone appointed personal representative.[iii] Moreover, once a Personal Representative is appointed, notice is required to be given to creditors which affords creditors anywhere from four (4) months to one (1) year to file a claim, depending upon the jurisdiction. Then, there is the tedious process of locating and marshalling bank accounts and investments, cleaning up and disposing a lifetime of possessions and/or marketing the Decedent’s real property. Rarely are homes sold within a year, even under the best market conditions. Some properties are occupied by holdover tenants or relatives. Even after the property is liquidated, the process of closing an estate through an accounting, setting a hearing and obtaining Court approval, can take many additional months even if the accounting is uncontested.

Because of the inherent delays of administration, some heirs, who have pressing financial needs (i.e. debts, foreclosure, rent payments, et. al.), are relieved to know that there is a product provided by Probate Funding Companies which can solve their personal financial problems while probate is ongoing.[iv] Whether the purpose of the funds is to prevent foreclosure, pay rent, pay medical bills, pay household debts or pay for continuing education, it makes simple economic sense that individuals would choose to minimize their risks by obtaining an advance now by assigning a fraction of their future and undetermined interest in an estate, rather than waiting for months or years to receive a distribution.

A Case for Probate Funding

Vivian Doris Tanner died in Shasta County, California on April 22, 1997. Her May 10, 1992 Will was admitted to probate by Order of the Probate Court on June 16, 1997 and her named Executor, Earl C. Tanner, Jr. was issued Letters Testamentary with full authority under the Independent Administration and Estate’s Act.  Pursuant to the Will, the named beneficiaries were Helen L. Tanner (20%), Marsha L. Tanner (20%), Katherine L. Courtemanche (20%), Erla Tanner (20%) and Earl C. Tanner (20%).

In February 2009, Robert Frey, an Attorney in Reno, Nevada contacted Inheritance Funding Company, Inc. (“IFC”) on behalf of his client Helen Tanner, a resident of Incline Village, because his client was experiencing hard times due to the crash of the real estate market. His client needed a significant influx of cash ($100,000.00 or more) in order to prevent the foreclosure of her properties while administration of her mother’s estate was pending.

The only remaining assets of the Estate at that time were the Decedent’s interest in Tanner Construction, Inc. which owned a 20% interest in the Dublin Land Company.  IFC was informed that there was ongoing litigation with the Dublin Land Company, including a partnership dissolution suit and a partition action set for trial in the latter portion of 2009. After completing its due diligence, IFC approved funding a $100,000.00 advance for Helen Tanner in consideration of a fixed sum Assignment in the amount of $192,000.00.[v] Shortly thereafter, two (2) other heirs (Marsha Tanner and Katherine Courtemanche) contacted IFC and applied for smaller cash advances, which were also approved.[vi]

During the course of administration, the Executor (Earl Tanner, Jr.) filed at least nine (9) annual status reports requesting continuances of administration until the litigation was resolved and the Dublin land was sold.  Finally, on or about November 23, 2017, the Third and Final Account and Report of the Executor was filed and set for hearing on December 11, 2017. The Account was approved, as were IFC’s three (3) Assignments, which were paid off in full on December 27, 2017, approximately nine (9) years after Ms. Tanner’s original $100,000.00 advance was funded.[vii]

The Tanner case and others like it illustrate the inherent risk in Probate Funding. It took IFC nearly a decade to collect its Assignments in the Tanner case, while in many other cases the funder never collects. With that risk of non-repayment in mind, we now turn to the legal distinctions between Assignments and Loans.

Stay tuned for Part 2 of our 4-Part series, where we explain the differences between Assignments and loans, with reference to relevant case law.

Steven D. Schroeder has been General Counsel/Sr. Vice President at Inheritance Funding Company, Inc. since 2004. Active Attorney in good standing, licensed to practice before all Courts in the State of California since 1985 and a Registered Attorney with the U.S. Patent and Trademark Office. 

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[i] Horton, David and Chandrasenkher, Andrea, Probate Lending (March 24, 2016). 126 Yale Law Journal. 102 (2016); Kidd, Jeremy, Clarifying the ‘Probate Lending’ Debate: A Response to Professors Horton and Chandrasekher (November 16, 2016). Available to SSRN: https://ssrn.com/abstract=2870615; Lloyd, Douglas B., Inheritance Funding: The Purchase of an Assignment From an Heir to a Probate or Trust, Litigation Finance Journal (October 31, 2017), http://litigationfinancejournal.com/inheritance-funding-purchase-assignment-her-probate-trust/.

[ii] Probate Lending, supra. Professors Horton and Chandrasekher, supra.  Article entitled ‘Probate Lending’.

[iii]  In many instances an executor or proposed administrator who is a family member cannot qualify for a bond.

[iv] IFC has been providing cash advances in the field for over 25 years.

[v] The Assignments included a negotiated provision for early payoff rebates which reduced the assigned amounts to $140,000.00 and $166,000.00 if paid off within 12 and 24 months respectively.

[vi] Marsha Tanner and Katherine Tanner each received advances in consideration of a $41,000.00 assignment and a lesser amount with early payoff rebates.

[vii] Helen Tanner’s net distributive share was $661,532.00, less IFC’s Assignment, and an unrelated promissory note she owed to estate.

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Golden Pear Upsizes Corporate Note to $78.7M Amid Growth Plans

By John Freund |

Golden Pear Funding has extended and upsized its investment-grade corporate note to $78.7 million, further bolstering the firm's capacity to serve the expanding litigation finance sector. The New York-based funder, a national leader in both pre-settlement and medical receivables financing, said the proceeds will support working capital and fuel strategic growth initiatives.

A press release from Golden Pear outlines how the capital raise reflects continued investor confidence in the firm’s business model. CEO Gary Amos noted that the infusion is critical as Golden Pear seeks to scale alongside the “rapidly expanding litigation finance market.” CFO Daniel Amsellem added that the new funding aligns with the company’s capital allocation strategy, aimed at optimizing operational efficiency and executing strategic projects.

Brean Capital, LLC acted as the exclusive financial advisor and sole placement agent on the transaction.

Founded in 2008, Golden Pear has funded more than $1.1 billion to over 87,000 clients and remains one of the largest specialty finance companies in the U.S. Its business model spans legal case funding and medical receivables purchasing, with backing from a network of private equity partners that provide institutional support for continued expansion.

Mayfair Legal Launches Wildfire Support Program for Plaintiffs

By John Freund |

Mayfair Legal Funding has unveiled a new initiative aimed at aiding wildfire victims in Los Angeles and Maui by providing pre-settlement advances tailored to individuals pursuing legal claims related to recent wildfire disasters. The program seeks to ease the financial burden on plaintiffs during the lengthy litigation process, allowing them to cover essential living expenses and medical costs without being forced into early or inadequate settlements.

An article in OpenPR reports that Mayfair’s program will provide wildfire-impacted claimants with cash advances while their cases proceed through court or settlement negotiations. The funding is non-recourse, meaning recipients are only obligated to repay the advance if their case is successful. This offering is particularly timely in light of the mounting legal battles related to utility-sparked wildfires in California and the catastrophic 2023 fires in Maui, both of which have left thousands seeking legal recourse and financial recovery.

Mayfair emphasized that this initiative aligns with its mission to ensure access to justice regardless of a claimant’s financial status. “We believe that no one should have to choose between basic survival and pursuing a rightful claim,” said a spokesperson for the funder, noting that the company’s underwriting process is designed for speed and minimal paperwork.

With natural disasters on the rise and litigation timelines stretching longer than ever, targeted pre-settlement funding like this may become an increasingly vital tool for plaintiffs. The wildfire-specific program from Mayfair underscores a growing trend of funders developing specialized products for mass torts and disaster-related litigation—an area likely to see heightened investor and regulatory attention in the years ahead.

New Express Legal Funding Portal and App Give Injury Plaintiffs Faster Access to Lawsuit Cash Advances

By Harry Moran |

The below is a sponsored post from Express Legal Funding.

Express Legal Funding, a leader in the pre-settlement funding industry, has officially launched the Express Legal Funding Portal and mobile app suite—now available on iOS, Android, and web. The innovative platform gives plaintiffs real-time access to their funding application status, document uploads, and direct case communication—all from a secure, user-friendly interface.

Since launch, the platform has already seen over 200 app installs across iOS and Android, reflecting strong early adoption and client demand for greater transparency, speed, and convenience in the legal funding process.

"This is the kind of digital leap our industry needed," said Aaron Winston, Phd, Strategy Director at Express Legal Funding. "With the Express Legal Funding Portal, clients no longer have to wait days for updates or navigate confusing paperwork. Now they can check their status, send documents, and message us—all in one place, and on their own time, anytime 24,7. Ray Bivona, our Operations Manager, did a great job building out the platform."

Meeting the Demand for Speed, Simplicity, and Security

The Express Legal Funding Portal and apps are designed to meet the evolving expectations of legal consumers, as reports indicate the industry has surpassed $1 billion in annual advances nationwide. Key features include:

  • Live Case Status Tracking: Monitor the full legal funding timeline in real time
  • Secure Document Uploads: Send attorney correspondence and case files instantly
  • In-App Messaging: Communicate directly with case managers—no long hold times or email delays
  • Push Notifications: Get instant alerts for updates, requests, and approvals
  • Funding Calculator: Estimate pre-settlement cash eligibility based on case type
  • Bank-Level Encryption: Ensures client privacy and legal compliance at every step

"Clients tell us this is the best communication experience they've had with a legal funding company," said Shawn Hashmi, Chief Executive Officer at Express Legal Funding. "The high number of downloads in such a short time proves there's a real demand for this kind of tool."

Transforming the Legal Funding Experience for Plaintiffs and Attorneys

The Express Legal Funding Portal improves operational efficiency and transparency on both sides of the process:

  • For Plaintiffs: Offers peace of mind and greater control during a financially vulnerable time
  • For Attorneys: Reduces administrative back-and-forth, freeing up time to focus on litigation

About Express Legal Funding

Express Legal Funding is a trusted national provider of non-recourse pre-settlement funding, helping plaintiffs access fast, risk-free financial relief while their lawsuits move through the legal system. Repayment is only required if the client wins or settles their case.

The company has served thousands of injured plaintiffs in cases involving car accidents, slip and falls, product liability, and more.

What's Coming Next

In addition to the current features, the platform aims to expand in the coming months with:

  • Attorney Dashboard: Real-time access for law firms to manage client funding
  • In-App Renewals: Easy follow-up funding requests for returning clients
  • Case Management Integrations: Compatibility with popular personal injury law firm software platforms like Clio, Filevine, and SmartAdvocate