If someone in your family died recently, their estate may need to go through probate court before the inheritance can be dispersed. In some cases, you can get your inheritance fast because the estate is small and simple. In those situations, if there’s a will, you may be able to bypass probate and disperse the funds. Some states have dollar limits on the value of the estate for when the heirs can avoid probate. However, in many cases, you will need to complete what is known as a formal probate process before any heirs can get their part of the estate. The probate process can be lengthy and complicated, which means you won’t have your portion of the estate for months or even longer. It can be confusing to understand how to claim inheritance money. An inheritance advance can help you get by until the probate process is complete and the estate is settled.
How the Probate Process Works
You should take a few moments to understand the basics of what is probate. Generally speaking, you don’t get access to your inheritance until probate is completed. Creditors must be paid first, which usually takes anywhere from two months to a year. At this point, the estate may be distributed to the heirs. Delays can happen which will mean the estate won’t be settled for even longer. For instance, an heir may contest the will. Another situation is when the administrator disputes a creditor’s claim against the estate.
What is Advance Inheritance Funding?
This process can take months, especially if the estate is large. All heirs must wait until it’s complete even if they are entitled to the inheritance. There is no way to speed up disbursement until all the steps are completed as required by each state. They usually can’t get a home equity loan on inherited property until the estate is settled. However, there is a way for heirs to get money before probate is closed. An inheritance advance, also known as an inheritance cash advance or estate advance, is one way you can get part of your inheritance while the probate process is being completed. These are funds you receive in your bank account based on your portion of the inheritance. It is not the same as a loan because you don’t have to pay back the money with an heir cash advance.
The Benefits of an Advance
One of the benefits of getting an advance on your inheritance is you aren’t responsible for paying it back. It’s not the same as an inheritance loan or loans against inheritance funds. The lender provides the funds for a part in the estate. If something happens to the estate and the funds aren’t repaid, the lender takes the loss instead of you. What this means is no risk for you if your inheritance is lost in probate due to other claims made against the estate or if the will is contested and changed.
You won’t make monthly payments on the funds or pay interest. This is one reason a cash advance is better than a probate loan or other funding. It’s even better than using a credit card, which would require you to pay interest if you couldn’t pay the balance in 30 days. Once you sign the paperwork to receive your funds, the terms cannot change. This protects you in case the distribution of the estate is delayed for some reason. All the risk is on the inheritance funding company and none on you. You might even get a reduction in the fees agreed upon if the inheritance is released earlier than expected.
Inheritance funding through an advance allows you to have the funds now when you need them instead of waiting for a long probate process, especially since you don’t know how long can an estate stay in probate. The amount you receive for your advance will depend on your portion of the inheritance. It’s generally capped at a percentage of the total inheritance. For instance, if your portion of the inheritance is estimated to be $200,000, you may receive $50,000 in an advance. Each inheritance advance company determines the percentage of an inheritance they are willing to fund, which can vary from 15 percent to 30 percent and sometimes even higher. That’s why it’s best to compare one company with another to determine the best option for your needs.
Can I Get an Advance on My Inheritance?
It is possible to get an advance if you’re getting an inheritance from an estate. You will need to fill out an application with an advance company that provides money for those with an inheritance. You’ll need to provide documentation proving that you are an heir in the estate and are interested in selling your share of inherited property. Once the lender has reviewed your information, they will determine if you’re approved for an inheritance cash advance. Once you’ve been approved, you can have the money in your bank account in just a couple of days. Getting cash advances can be fast and easy if you are part of an inheritance. Just make sure you are careful in avoiding beneficiary scams. Stick with the top probate loans and recognized providers.