I love how abc123 says "no Protestant" as if all Protestants believed the same thing! Abc123, I know Protestants who believe that good works in grace do have a reward in heaven, and others who say they do not. Most Protestants deny the Blessed Mother is greater in grace than you or me. That is one consequence of the mistaken soteriology many Protestants hold. And almost no Protestant believes in an intermediate state of purification, and prayers for the departed though St. Paul teaches it, and both Catholics and Orthodox do.
And Yes, without Christ's Sacrifice, we could never have been justified. The very state of grace itself is a gratuitous gift. No natural good work could possibly merit it. These things are taught in Trent.
http://www.thecounciloftrent.com/ch6.htm "we are therefore said to be justified freely, because that none of those things which precede justification-whether faith or works-merit the grace itself of justification" After justification, every good work done in union with Christ now becomes meritorious through Him. Do you agree with that?
This is how Trent interprets St. James,
"CHAPTER X. On the increase of Justification received. Having, therefore, been thus justified, and made the friends and domestics of God, advancing from virtue to virtue, they are renewed, as the Apostle says, day by day; that is, by mortifying the members of their own flesh, and by presenting them as instruments of justice unto sanctification, they, through the observance of the commandments of God and of the Church, faith co-operating with good works, increase in that justice which they have received through the grace of Christ, and are still further justified, as it is written; He that is just, let him be justified still; and again, Be not afraid to be justified even to death; and also,
Do you see that by works a man is justified, and not by faith only. And this increase of justification holy Church begs, when she prays, "Give unto us, O Lord, increase of faith, hope, and charity." Are we in agreement?
St. Paul said that even if we have the faith that moves mountains, it avails nothing without love. Elsewhere, St. Paul said it is faith that works through love that counts. An act of "faith working through love" is what Catholics call an act of contrition for our sins, where we repent because we are sorry we have offended God and Christ Crucified. Yes, this avails, or recovers justification. After that, we must keep the Commandments and receive the Sacraments, where grace is given to those who are not justified, or increased in those who are.
If you disagree, explain where. What you call "the state of justification" and "sanctification", Trent more correctly describes as "the state of grace after justification is received" and "the increase of justification received". But if you believe sanctification is indeed an increased conformity in grace and union with Christ of those in the infused state of justification, then you are close to the Catholic doctrine.
Now, to the next part of what St. Paul said. Do you believe bad works, or venial sins, of those in grace, for which penance was not done, needs to be purified after death before entrance into heaven? This is what the Apostles teach and why they command prayers for the dead. The Catholic Church has kept that Tradition. Have Protestants?