- Notice: 360FinancialServices cannot help arrange Probate Loans, this article is for information only.
Probate is the legal process of distributing the estate of a family member who passed away to his heirs in the form of an inheritance. However, this is typically a tedious and lengthy process that may even entail a significant financial burden. There are instances wherein the inheritance may only be sufficient to cover the fees involved in the process.
This is the reason why most heirs and beneficiaries choose an inheritance funding early on.
Inheritance Funding
Inheritance funding is also known as an estate loan, inheritance loan, inheritance advance, or probate advance. This loan type is generally only offered to the heirs of estates in probate or trust beneficiaries. Thus, in filing for this type of loan, there are usually no employment requirements or credit reports. The duration of an inheritance funding is commonly short-term, with the overall loan process approval taking only a couple of days.
There are normally two types of inheritance funding, one that allows you to get a cash advance from your inheritance, and another that grants you a loan, using your inheritance as a collateral.
Cash Advance Inheritance Funding
Cash advance inheritance funding is also referred to as probate advances. In a typical scenario, probate advances entail the need for you to transfer your right to your inheritance in exchange for a certain fee. Since probate advances are not necessarily a loan, you will be relieved of the burden of repayments. Even with some of the top probate loans, most heirs and beneficiaries, consider probate advances because of the absence of interest on the money that is granted. It also goes true that there are no hidden fees to be paid upfront with a probate advance.
Estate Loan
An estate loan is another type of inheritance funding wherein you are borrowing a certain sum of the real estate assets that you currently do not have any access to. Often referred to as an inheritance or a probate loan, when you receive the funds you have borrowed you will need to repay it together with the additional interest and fees. Additionally, you will need to use your estate as a collateral for the loan.
Advantages of an Inheritance Advance
Immediate Access to Cash
Since the probate process can be significantly costly, a probate advance may cover all the costs of settling the estate. More often than not, heirs are responsible for paying the legal fees involved in the process, as well as the estate tax and debts of the estate owner. There are also instances wherein the estate may require maintenance and repairs, and the costs for these can be covered by the immediate access to cash through a probate advance. This advance can even cover funeral costs and other related expenses that will save you from using your own emergency fund.
Alternatively, if you have immediate access to cash, you can use this money to pay off your personal debts such as your medical bills or credit card charges with high-interest fees. If the money is sufficient enough, it can even cover your loans, or a portion of it. It is best to pay off these types of debts as soon as possible to avoid drowning in more debt.
Finally, a probate advance may just be the answer to cover your day to day expenses. Since a probate process may take years, you can get an immediate cash advance to get you through a tough time. It may be the answer to help you get by, without the need to take out any other form of loans.
Estate Negotiations
A probate advance may just be the answer for several heirs and beneficiaries in conflict to come to certain agreement terms. With a probate advance, you can negotiate on a real estate inheritance. For instance, some people may opt for cash instead of a real estate inheritance. In this case, you can take out a probate loan to pay off an heir or a beneficiary’s share of the property.
Certainty of Probate Success
A probate advance is a way of ensuring probate success. While the outcome of a probate process is generally unknown, a probate lender may just work to your advantage. Probate lenders have a comprehensive understanding of the probate process more than a common individual. Thereby, there is a greater chance for him to execute the probate process more efficiently and effectively. With a probate lender granting you immediate cash in exchange for the rights to your inheritance, he will take all the necessary measures to ensure that the probate process will be a success. If a certain estate proves to be complicated or an executor proves to be incompetent, chances are, a probate lender will enforce his due right to get what is owed to him. After all, his investment depends on it too.
Probate Advance Process
Typically, the first step in securing a probate advance is consulting with a lawyer. You also have the option to check with a financial adviser too. In parallel with this, you need to understand the full value of your inheritance. After being equipped with the right knowledge, it is best to notify the estate administrator or executor. This should be done before even gathering all your necessary documents.
With all those already in place, you can begin searching for reliable and noteworthy probate lenders. Compare each of the lenders you will shortlist to work out the details to your best advantage. Once you find a perfect probate lender for you, it’s time to fill out the application forms and begin the process. Make sure that you understand the terms and conditions stated before signing any documents. After this, all that’s left to do is to wait for your funds.
There may be instances wherein the probate process may be long, tedious, and financially draining. In cases of delays and financial incapacity to shoulder the processing fees, there is always the option of applying for an inheritance funding. In this way, you will have the capability to process the requirements until your inheritance is granted.
