A death in the family is always a difficult event. In some cases, those left behind run into financial trouble. Luckily, for those who are beneficiaries to an estate, there is a solution. If you are an heir up for an inheritance and need money quick, you should consider applying for an inheritance loan.
What is an inheritance loan?
Technically speaking, when you take out a loan, you are personally responsible for paying it back. With this type of loan, however, that is not the case. It is really more like a cash advance, and that is why it is interchangeable with inheritance advance. You can apply for this if you are a beneficiary of an estate that is in probate. The only difference is that as a beneficiary, you do not have to pay anything back. Whatever you owe comes out of what you stand to gain from the estate.
Before getting into the process, it is important to understand what probate is. Probate is the legal process undertaken to prove the authenticity of a will. This method determines the distribution of a last will and testament with finality. Additionally, the probate process addresses any debts left behind by the deceased.
The duration of this legal process depends on the size of the estate in question. Larger ones are often more difficult to settle and involve more people. This is often the cause of prolonged cases. Other causes include questions of legality concerning the will or problems regarding the distribution to multiple heirs.
How does it work?
Funds for an inheritance advance come from lenders. You have to file an application and wait to receive payment within a certain number of business days. After applying, you reassign a portion of your inheritance to your lender. This portion covers the costs of whatever money you advance.
What are the eligibility requirements?
Terms and conditions vary according to lender, but some conditions apply to all cases. Firstly, there has to be a valid estate that is currently in probate advance . Second, you must be an heir to or beneficiary of the will or trust. The third condition depends mostly on your lender, which is the size of the estate. Some lending companies require the inheritance be of a certain size or price. In most cases, the figure ranges from ten to twenty-five thousand dollars or more. You can negotiate with your lender to determine whether or not you qualify.
Once you meet the eligibility requirements, the lending company will begin processing your case. Do not be surprised if a lender performs a simple background check verifying your financial history. This might include a peek into your credit report. If you are dealing with bad credit or unemployment, do not worry because these are not grounds for outright rejection of your inheritance advance.
Apart from this simple background check, lenders will also require that you furnish documents proving that you are an heir to the estate. Lenders usually consult estate attorneys to settle any problems or assess the worth of any properties. Upon settling these issues, you can advance up to fifty percent of your future inheritance. All in all, the process can take between five to ten business days.