Losing a loved one is hard enough. The last thing any family needs is a 12- to 24-month financial freeze while the courts sort through an estate.
ut that's exactly what happens in California, where probate cases routinely stretch well beyond a year — and in counties like Los Angeles, backlogs push timelines even longer.
During that waiting period, the bills don't stop.
Mortgage payments come due. Property taxes accrue. Insurance premiums, maintenance costs, HOA fees — they all keep arriving while heirs sit in limbo, unable to access the very assets their loved one left behind.
This is where probate loans come in.
What Is a Probate Loan?
A probate loan — sometimes called an inheritance advance or estate loan — provides immediate liquidity to heirs by advancing funds against their expected share of the estate.
Instead of waiting a year or more for the court to finalize distribution, heirs can access capital now to cover pressing expenses or simply maintain financial stability during a difficult chapter of life.
How They Differ from Traditional Loans
The distinction matters. Probate loans are non-recourse, meaning they're secured against the estate itself — not the heir's personal credit, income, or employment history.
If you've ever been turned down for a conventional loan because your wealth is tied up in real property rather than liquid assets, you understand the frustration.
California estates are often property-rich and cash-poor, especially with median home values well above national averages. A probate loan bridges that gap without putting the heir's personal finances at risk.
Why This Is Especially Relevant in 2026
California's probate landscape shifted this year.
The small-estate threshold rose to $208,850 for personal property, and a new residential succession option now allows homes valued under $750,000 to bypass probate — but only when all heirs agree in writing.
In practice, family consensus is rare, meaning most estates with real property still go through the full probate process.
Meanwhile, the reinstatement of the Medi-Cal asset test introduces new complexity. Individual asset limits are now capped at $130,000 (with a 30-month lookback period), creating additional pressure on families trying to preserve eligibility while managing estate expenses.
Court delays remain a persistent concern statewide, and none of the****se legislative updates actually shorten the probate timeline itself.
The bottom line: families still face long waits, ongoing carrying costs, and limited access to inherited assets — which is exactly the problem probate loans are designed to solve.
What This Means for Families
For heirs navigating probate, a probate loan can mean the difference between keeping a property and losing it to deferred maintenance or missed payments.
It can cover funeral expenses, legal fees, or simply keep the household running while the estate works its way through the system.
For lenders like Capital Direct Funding, it represents an opportunity to provide real solutions to a structural challenge embedded in California's probate process — helping families preserve wealth rather than watching it erode during a court-mandated waiting period.
If you or someone you know is going through probate and needs access to funds now, we're here to help.