Legal finance provider evolves alongside lawyer and client needs in estate litigation space
August 26, 2024
BridgePoint Financial continues to innovate within the legal finance sector with its Estate Litigation Funding, an extension of its Inheritance Advances product line. Designed specifically for estate lawyers and their clients, this funding solution addresses the financial hurdles often encountered in estate disputes. According to Tim Andrews, Chief Business Development Officer at BridgePoint, “Several of our existing clients found themselves in the midst of complex estate litigation and we quickly recognized that we could help in those cases as well.”
Andrews notes that the inspiration for this product came from legal professionals within the estate space, who identified a significant gap in available resources. “The lawyers involved saw the benefit of our solutions for clients in these situations, and that’s how this evolved.”
As with several of BridgePoint’s offerings, the main driver for estate litigation funding is access to justice. Estate lawyers often encounter cases where executors, trustees, or beneficiaries are unable to move forward due to financial constraints. This situation can result in missed opportunities for meritorious claims, as the lack of funding forces lawyers to either turn away clients or absorb the costs themselves— neither of which is an ideal solution. BridgePoint’s Estate Litigation Funding provides a viable alternative by offering loans with favourable terms that are repayable upon the estate’s finalization. The funding can be structured as a lump sum, monthly draw, line of credit, or a combination, empowering clients to proceed with their cases.
As legal professionals in the estates space know well, most litigation stems from will challenges whether there are multiple versions, someone is left out, or the testator’s capacity is called into question. In one case BridgePoint assisted in, the borrower was one of three adult children fighting over their mother’s $25 million estate. There were three wills, each favouring a different child, and the matter was proceeding to trial with a significant recovery guaranteed no matter the outcome. BridgePoint provided a lump sum and a line of credit of $500,000 to cover outstanding and ongoing legal fees, to be repaid by the borrower from settlement or trial proceeds.
In another example, the borrower was raised by her grandmother but only the deceased’s two children were named as residual beneficiaries of the estate. Borrowing funds from BridgePoint to cover legal fees and assist with personal expenses until funds were released, the borrower challenged the letter of probate and was successful.
Another file the lender provided funding for resulted in a groundbreaking decision: in Drennan v. Drennan, 2024 ONSC 3905, the court found that because they were doing “everything in their power to undermine the process,” the cost of borrowing was recoverable from the opposing party — further underscoring how BridgePoint’s solutions support access to justice.
“Essentially, we’ve applied why we started in 2005 in personal injury, to the estates space,” Andrews sums up. “We step in and ensure litigation is funded so the lawyer has the time and resources to advocate on a client’s behalf for a fair entitlement.”
Beyond the innovative products themselves, BridgePoint differentiates itself through its specialized team that works closely with the law firms involved to ensure they have all the required information to put forth a responsible loan that protects the client, the firm, and the lender itself. Because BridgePoint products are specific to the legal sector, “we’re very familiar with the process, and our legal team includes professionals with extensive backgrounds in estate law” Andrews notes.
“We’re cognizant of legislative differences from province to province, understand various probate practices, and are good at identifying the actual entitlement that we ultimately lend on.”
Working with the lawyer on the case to review all estate documentation, understand the nature of the challenge, and gather personal insights not only allows for a quick disbursement of funds, but establishes a direct rapport — and brings the relationship side of the business full circle. The BridgePoint team doesn’t look at any loan in a silo but seeks to foster relationships with firms where the lawyers feel comfortable to reach out at any time to discuss whether the financial company can assist in a particular circumstance.
“The ideal way to learn more is to reach out to us — we’re always happy to set up a presentation with both our business development and legal teams to really run through various use cases of the product as well as answer any questions on particular files, examples, or case studies.”
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