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Do Inheritance Loans require a Court Order in Southern California

Inglewood, CA |

My former attorney advised me to get an Inheritance Loan for $20,000.00 to Administer my Grandmother's Estate. $$8,000.00 for his retainer fee and 12,000.00 to take care of Estate Affairs.

Attorney Answers 3

Posted

Yikes - probate attorney fees are not allowed to be paid prior to court order which doesn't typically happen until the end of the probate. I strongly suggest you have an attorney review this matter for you as estate inheritance loans are very expensive and if the attorney inappropriately took fees, he should be responsible for the costs of the loan, at least!

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Asker

Posted

Thank You Ms.James this was a costly $38,000.00 transaction.

Christine James

Christine James

Posted

I agree and that is why I would look into it. If it was a probate that is not allowed and you have recourse. If this was a probate, speak with an attorney. It will be worth it.

Posted

I concur with Ms. James' answer if this is a probate estate. If it is a trust estate, however, very different rules apply and the attorney's suggestion may be a necessary evil depending on the financial status of the trust.

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Michael Raymond Daymude

Michael Raymond Daymude

Posted

I just reread your question. If you are seeking a loan as a beneficiary, and not as administrator or trustee, because of non-administrative issues such as litigation as a beneficiary, the attorney's advice may be simply due to your own financial situation.

Posted

Based on your question, this sounds more like a personal loan to you as an advance on your inheritance. Probate Fees for attorneys are statutory. 4% first 100K, 3% next 100K, 2% on the next 800K and 1% thereafter. Fees are based on gross values. Filing fee is $435, and cost for probate referee is .1% of 1% of appraised value for real property and personal property other than cash.

If this is a probate, you should be very leery of the attorney. It does smell right.

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