What To Know About Probate Advances

Each Thursday, I host a live call to talk about all things probate real estate. Listen to this episode below, or click here to join us on our next call.

The Complexities of Probate Advances: A Problem-Solving Job

Probate advances involve a unique mix of challenges and opportunities. Unlike traditional debt collection, probate advances require problem-solving skills due to the ever-changing nature of the probate world. From family disputes to administrative issues, the problems faced in probate cases are diverse and require a customized approach.

On this week's episode of Probate Weekly, I talked to attorney Christopher Kalbfell about the intricacies of the probate advance industry.

Those in the probate or inheritance advance field are problem solvers rather than collections agents. The range of problems in probate cases is vast and ever-evolving, and these services can help families get through the often-lengthy and stressful probate process. In both probate advances and in private real estate, professionals are paid to overcome obstacles that most people struggle with.

Procedures Vary From State to State

Working in different states with varying probate procedures presents challenges for those in the probate advance space. Christopher explained that while some states have well-developed procedures, many others lack a regulatory framework for probate advances. This creates a "Wild West" scenario where estate attorneys may be unaware of the product or misunderstand its nature. In such cases, he relies on his research skills and consults local attorneys to navigate the legal landscape effectively.

While he occasionally consults local attorneys, the bulk of his learning is through self-research into case studies, statutes, and legal principles.

For real estate agents working with probate clients, it's important to familiarize yourself with the probate code, particularly regarding procedures for selling houses with court approval.

Filing Advance Contracts

Filing advance contracts with the court is incredibly important, especially in the state of California. This ensures transparency and provides an opportunity for objections or challenges to be addressed.

Pros And Cons Of Probate Advances

Probate advances can allow clients to fulfill their financial needs, such as paying for a loved one's funeral or funding their child's education. The ability to provide timely financial support during the lengthy probate process is seen as a life-changing positive for many customers.

However, there are also potential risks and challenges involved in probate advances. Sometimes issues arise with the value and condition of properties, foreclosures, or property damage caused by customers. Underwriting for probate advances is complex, and requires quick assessments and balancing risks due to time constraints. Sometimes, there are also cases where the petitioner's entitlement to the inheritance was contested, leading to legal complications.

Despite the occasional risks and complications, probate advances have proven to be a valuable resource for individuals in need of financial support during the probate process.

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Want to listen to the episode this newsletter is based on, or level up your probate business? Check out my podcast, Probate Weekly, available wherever you listen to podcasts.