For professionals5 min read

When a deceased estate includes a property: what financial advisers and accountants need to know

Quick answerWhen a client's inheritance is tied up in a property that hasn't yet sold, an inheritance advance can provide up to 50% of their confirmed entitlement without waiting 9–18 months for settlement. It's assessed on the estate, not the client's income, and repaid directly from the estate — not a recommendation you need credit authorisation to point clients toward.

Property is the dominant asset class in Australian deceased estates. When your client inherits a share of a residential property, often the family home, they face a problem that financial products weren't traditionally built to solve: they're asset-rich and cash-poor, often for more than a year, with no mechanism to access the value they are entitled to.

This article is written for financial advisers and accountants who work with clients in this situation. It covers the financial pressure points, what conventional options don't work, and how an inheritance advance can provide liquidity while the estate is being administered.

The property estate problem

Inheriting a property as part of a deceased estate means waiting. Until the estate is administered, probate granted, debts cleared, property sold, proceeds distributed, the beneficiary has no access to the asset or its value.

In Australia, property-only estates typically take 9 to 18 months to settle. During that period, clients may be managing:

Funeral costs
Reduced income (particularly if they've taken time off work to manage the estate)
Ongoing costs of the estate property itself such as rates, insurance, maintenance
Legal fees from the estate administration process

For clients who are retired or on a fixed income, this period can create genuine hardship. And because the problem is temporary: the funds are coming — long-term debt products often are not suitable.

Why conventional options don't work

Advisers often explore the obvious alternatives first. Here's why they typically fall short:

Personal loans. Assessed on income. Clients who are retired, part-time, or not currently working often don't qualify.
Home equity / redraw. If the client has equity in their own home, a redraw or line of credit may be available, but this adds debt to an asset they may not want encumbered, and many older Australians have already paid off their mortgage or are reluctant to use their home as security.
Credit cards. Suitable only for small, short-term needs. Not appropriate for bridging a 12-month estate settlement gap.
Interim distribution. Possible if the executor agrees and the estate has liquid assets, but property-only estates rarely have enough cash to support this.

How an inheritance advance works for your client

An inheritance advance is a consumer credit product assessed on the estate, not on the client's personal income or credit position. Inherita advances up to 50% of the client's confirmed entitlement, with repayment coming directly from the estate at settlement.

The client makes no monthly repayments. The advance, fees, and accrued interest are settled in one transaction from their share of the estate proceeds. Their total repayment is capped at their entitlement. They cannot repay more than they receive.

For a client inheriting a $300,000 share of an estate, a $75,000 advance (25% of entitlement) at indicative rates over 9 months would cost approximately $11,000–14,000 in total fees and interest — giving them $75,000 today and leaving them with around $211,000–214,000 at settlement.

What advisers and accountants cannot do. Recommending a specific credit product to a client requires an Australian Credit Licence or credit representative authorisation. If you don't hold appropriate credit authorisation, the correct approach is to inform the client that an inheritance advance product exists and that they can assess it independently — not to recommend it as the right product for their situation. Inherita's website includes an eligibility check and estimator that clients can use without any adviser involvement.

How to refer a client appropriately

The simplest approach is to mention that the product exists and direct the client to inherita.com.au to assess their own eligibility. You are not making a financial recommendation — you are pointing them toward a resource. The client makes the decision.

If you would like to understand the product in more detail before having that conversation with a client, including the legal structure, the fee model, and how it interacts with the estate administration process, Inherita welcomes that conversation directly.

Frequently asked questions

Can I recommend an inheritance advance to a client?

Only if you hold an Australian Credit Licence or credit representative authorisation. Otherwise, the appropriate approach is to inform the client that the product exists and let them assess it independently.

Why don't personal loans or a home equity redraw solve this?

Personal loans are assessed on income, which excludes many retired or part-time clients. A redraw on the client's own home adds debt to an asset they may not want encumbered — and many older Australians are reluctant to use their home as security.

How much does an inheritance advance typically cost?

As an example, a $75,000 advance (25% of a $300,000 entitlement) over 9 months would cost roughly $11,000–$14,000 in total fees and interest, leaving the client with around $211,000–$214,000 at settlement.

What's the simplest way to refer a client?

Mention that the product exists and direct them to inherita.com.au to check their own eligibility and run the calculator. That's a resource pointer, not a financial recommendation.

If your clients are beneficiaries of an estate that includes property, Inherita can help bridge the gap before settlement.

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