When Natalie Beveridge's mother died five years ago, the grief of her loss quickly turned into a financial nightmare.
Despite inheriting her mother's home worth about $550,000, she discovered that it came with almost $50,000 in debts that needed to be cleared before the inheritance could be finalised.
Ms Beveridge, a single mother from Belmont, found there was little cash in the estate to cover legal fees, council rates, strata costs and outstanding debts, as well as prepare the property for sale.
"It's difficult enough when you lose your mum, but what I thought was going to be a relatively straightforward process became much more complicated and overwhelming than I thought it ever would," she said.
"Her property was the main asset in the estate, but there wasn't available cash to utilise to tend to the costs that continued to accumulate.
"So while there was value in the property and the estate, it wasn't really accessible. We had unfinished renovations, so it wasn't like it could immediately go on the market either."
Without savings to clear the debt or pay for the funeral and other costs, she was unable to secure a loan despite the substantial asset she was set to inherit.
"I couldn't borrow money to push this forward so I was stuck, literally stuck, and it affected me," she said.
Her situation is becoming increasingly common as Australia is set for its largest intergenerational wealth transfer in its history.
An estimated $5.4 trillion will pass between generations by 2025, concentrated in family homes, superannuation balances and financial assets.
Although substantial personal wealth is being passed on, families are finding themselves asset-rich but cash-poor as estates remain frozen in probate for months, or longer.
While Ms Beveridge managed to pay off the property's strata fees over time, incoming bills and legal fees created a "nightmare" situation.
"It was such a rollercoaster and at times I felt like burying my head in the sand," she said.
"I had this value dangling in front of me but I couldn't quite reach it. There were legal fees and then I'd get legal action - it was an absolute nightmare."
After five years in financial limbo, she found assistance with specialist family law lender Justfund, which has expanded into estate funding to bridge the inheritance gap for executors and beneficiaries.
The lender offers funding to cover legal and administration costs during the estate administration process, providing an early advance on inheritances and funding for estate disputes.
The funding is assessed against the total value of the estate and the expected inheritance, bypassing personal credit scores, income, or employment status.
As the funding is specifically for executors to cover estate expenses, Ms Beveridge's credit history was no longer an obstacle.
"Because it was able to be framed as estate expenses, then my consumer credit didn't come into question," she said.
"That's what got it across the line, and that's what had essentially been my roadblock."
Newcastle Legal and Conveyancing lawyer Emma Essex said the inheritance gap was a frequent issue for people who inherited an estate but were trapped by court timelines.
"There are often long wait periods to get a probate from the court, and until you get probate, the person could have died with $100,000 in the bank, but it is very difficult to sometimes access that money," she said.
Unlike personal loans or high-interest emergency lenders, she said the lender's funding structure acted more as a flexible line of credit to work with the estate's timeline.
Ms Essex said the funding was "the equivalent, but perhaps more cost-effective, than a personal loan".
"You only pay interest on what you use of the limit," she said.
