Inheritance advances: a guide for estate lawyers and their clients
Estate administration takes time, and beneficiaries often experience real financial hardship during that period. As an estate lawyer, you may already be fielding questions from clients who are asset-rich but cash-poor, waiting on a property sale or the completion of probate while managing everyday financial pressure.
Inheritance advances exist to address exactly this problem. This guide explains how they work, what the legal structure looks like, and what estate lawyers need to know before referring a client.
What is an inheritance advance?
An inheritance advance allows a named beneficiary to access a portion of their confirmed inheritance entitlement before the estate has been distributed. The advance is secured against the beneficiary's share of the estate and repaid directly from the estate at settlement, before the beneficiary receives their distribution.
At Inherita, we advance up to 50% of a beneficiary's confirmed entitlement. The product is regulated under the National Consumer Credit Protection Act (NCCP Act), and the advance is assessed on the estate assets, not on the borrower's personal income.
The legal structure
The Inherita advance involves two key legal instruments:
In addition to the deed, Inherita registers a security interest over the inheritance proceeds on the Personal Property Securities Register (PPSR). This provides a registered security position in favour of Inherita over the relevant share of the estate proceeds.
The loan contract itself is only between Inherita and the borrower.
What the executor is asked to do
The executor's role is limited. They are asked to:
- Sign the Deed of Assignment and Direction, acknowledging the beneficiary's assignment and direction
- Repay the outstanding advance amount (principal, fees, and accrued interest) from the beneficiary's share of the estate before distributing the balance to that beneficiary
The executor is not providing financial advice. They are not approving or endorsing the advance as appropriate for the beneficiary. They are simply acknowledging a legal direction from the beneficiary and acting on it at distribution.
Common questions from clients — and how to respond
"Is this a legitimate product?" Yes. Inherita is regulated under the NCCP Act. The product is a consumer credit contract, and Inherita holds an Australian Credit Licence, or operates as an authorised credit representative under one.
"Will I owe more than my inheritance?" No. The total repayment is capped at the borrower's share of the estate. It is a non-recourse product.
"What if the estate value falls?" Inherita's recourse is limited to the estate proceeds. If the estate value is lower than anticipated (for example, due to a will dispute), interest continues to accrue until the advance is repaid, but the borrower cannot be pursued for more than their entitlement.
"Does this affect other beneficiaries?" No. The advance is secured against the borrowing beneficiary's share only. Other beneficiaries' distributions are not affected in any way.
Which estates does Inherita work with?
Inherita works with estates that are professionally administered, that is, where a solicitor, trustee company, or other professional is acting as executor or administering the estate (individual or joint executors who are not lawyers are OK). We do not currently advance against estates where administration is entirely self-managed.
The estate must include property, cash, or listed securities as its primary assets. We apply a conservative valuation methodology and advance up to 50% of the net discounted estate value attributable to the borrowing beneficiary.
How to refer a client
If you have a client who might benefit from an inheritance advance, the simplest approach is to direct them to inherita.com.au. They can check their eligibility, use the estimate tool, and apply directly. You do not need to be involved in the application process.
If you would prefer to have a conversation first, about the legal structure, the deed, or how we work with estate lawyers, we welcome that. We work with solicitors, financial advisers, accountants and other professionals across Australia and are happy to answer questions before any referral is made.
Frequently asked questions
Is Inherita a regulated lender?
Yes. Inherita is regulated under the National Consumer Credit Protection Act, and holds an Australian Credit Licence (or operates as an authorised credit representative under one).
What is my firm's role if a client takes an advance?
Limited. As executor or acting solicitor, you'd sign a Deed of Assignment and Direction acknowledging the beneficiary's instruction, and repay the advance from that beneficiary's share at distribution. You are not providing financial advice or endorsing the product.
Does an advance to one beneficiary affect the others?
No. The advance is secured against the borrowing beneficiary's share only, via a PPSR-registered security interest. Other beneficiaries' distributions are entirely unaffected.
What types of estates does Inherita work with?
Professionally administered estates — where a solicitor, trustee company, or individual/joint executor is acting — with property, cash or listed securities as the primary assets.
We work closely with estate lawyers across Australia. If your clients need liquidity before settlement, we'd like to hear from you.
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