It can take months or even years for family members to receive money from an inheritance or trust fund of their loved one. Many estates must go through the probate process, which can be quite lengthy and confusing for the average heir. It is important to understand this process, the reason for the timeline and what beneficiaries can do to get their inheritance faster.
What is the Probate Process?
Probate is the legal process of transferring the assets of the deceased to the chosen heirs or others whom the court deems to be eligible to receive the inheritance. Someone involved with the estate, which is often the executor or trustees or even a lawyer for the estate, must file probate with the local court where the deceased person spent their life. This step officially begins the process of having probate opened.
Each state makes its own laws regarding how probate is to be handled. Statutes are in place from Los Angeles, California to New York to Hawaii on how to handle the estate of those who have deceased. However, many of the details are similar.
All assets must be recorded and valued once probate has started, debtors must be paid, any estate tax paid and heirs must receive the remaining funds based on a will or the ruling of the court. The timeline of the settlement process can vary from just a few months or even take years to resolve.
If someone disputes the will, the timeline will often be longer until the court can resolve the dispute and determine if the will is valid. During this time, the heirs do not have access to the money that is rightfully theirs, and there is very little they can do about the delays even if they consult with an attorney.
Ways to Access Inheritance Funding Sooner
It is possible to gain access to your inheritance funds even before probate is settled. You can apply for an inheritance loan or inheritance cash advance and get a free quote. This enables you to receive a portion of the money from your inheritance which may be helpful until the court releases probate.
Companies or an LLC that provide inheritance cash advances will distribute the funds to you in your bank account in a few days if you qualify. You must fill out an application to determine how much you can receive. You can click on a site online, fax the application or call a phone number to talk to one of the experts and find out about eligibility. It only takes a few minutes to complete the initial process
Once you are approved for an inheritance cash advance, you may receive the funds in your bank account within a couple of days. The money may be yours to do with as you wish with no payments required until the estate is settled. At that point, the broker gets their money back with no cost to you.
What You Should Know about Inheritance Cash Advances
Not all cash advances on inheritances are the same. Some charge an interest rate and have specific requirements you must meet. This product is often termed estate loans or broker loans and may use your inheritance as collateral. Others are not really a loan at all because you do not pay any interest on the money.
You will want to know how much of your inheritance you need to receive now. You may need the money to manage the estate assets or to pay or your living expenses. If you were a caregiver for the deceased, you may have even gotten into a tough financial situation during that time of care and need the funds now to help you get back on track.
You also want to know if the company can do business in your state. You will find advance companies from New Jersey to Ohio to Puerto Rico, and many of them are licensed to provide cash advances in multiple states. This is especially important if you do not live in the state where probate is taking place.
How Do You Qualify for an Inheritance Cash Advance?
Qualifying for a cash advance with your inheritance is usually not difficult. Each provider will have different requirements, but this service is generally easier than qualifying for personal loans or other types of financing.
The main criteria to qualify for an inheritance loan is to prove that you are an heir to an estate. You may need to provide specific documents that show you will receive a certain amount of money. Some acceptable documents include the following:
- Copy of the will
- Copy of letters of administration from the probate court
- Official death certificate
- Certification of the amount to be received in your inheritance from the personal representative of the estate
You will also need to provide proof of your identity.
Another distinction between lenders of inheritance cash advances is how much they are willing to lend. It is often a percentage of the inherited amount and can be several thousands of dollars. For example, they may lend up to 50 or 60 percent of the amount you will receive. Some will offer more while others will have stricter limits for the customer.
What is the Cost of an Inheritance Cash Advance?
You may be interested to know how much you will need to pay for the advance on your inheritance. This amount can vary based on each lender’s guidelines. Some charge a high interest rate if they are actual lenders. Others will not charge any interest. Instead, they will charge a fee for providing the money upfront and covering their risk.
If the terms of the advance include interest, you will need to discuss the total amount based on how long it will be before probate is completed and the inheritance funds released. In this situation, the cost is greater if it will longer before probate is settled.
The factors that determine the cost of the cash advance include the risk of the inheritance and any complications that may arise, what creditors are involved, what taxes will be due and how long it may take to close the estate. The lenders work with administrators, attorneys and others involved in the probate process as part of the evaluation to determine the answers to their questions and come up with a reasonable cost.
Receive Money from a Probate Cash Advance
Once your request is received, the lender will review the information in order to see if you qualify for a probate advance. If it is approved, you can receive the money in a bank account in just two or three days.
You are able to spend the money any way you want. You can use it to pay bills or long-term debt, pay off a mortgage, make a major purchase, finance a vacation or house remodeling or to buy a new car. There are no limits no what you can do with the money once you receive it.
You also do not have to worry about repayment of the loan. In most cases, the lender will receive the money from the inheritance once probate is closed. They will receive distribution off the top, and you will receive what is left of your share of the inheritance. It also has no effect on the claim of other heirs.
Benefits of an Inheritance Cash Advance
A cash advance on your inheritance can be beneficial in so many ways. First, you receive money now when you need it instead of waiting for months or even years to get the money you are owed. You will know when the funds arrive in the bank instead of wondering how long it will take for the estate to be settled.
Another benefit of these programs is you do not need to file the paperwork. The providers handle all these details, so they receive payment once the funds are available. It is generally not needed to make any monthly payments on your cash advance because it will be repaid when the estate is settled.
The application process is generally a straightforward and easy matter to complete and submit. It does not require a specialist or a lot of resources on your finances, good credit or other criteria because the deciding factor is based on the amount of your inheritance. It does not take long to be approved, unlike with many types of bank loans.
Perhaps the greatest benefit for people is that these advances are known as non-recourse transactions. This means you have no liability to pay back the loan and the lender has no recourse against you. They are receiving their recourse from the inheritance. If something bad happens to the funds in the estate, you are not responsible. The lender suffers the loss.
There will be no change in terms once the paperwork has been completed and signed. This means that if the probate process takes longer, the cost for the advance will not change.
If you have an inheritance coming, but you’re not sure when you’ll receive the funds, you may prefer to look at an estate cash advance. First, find out how much you can expect to receive with a no-obligation quote. Then, find out which companies offer inheritance cash advances in your area. Learn the details of what they offer so you can make an informed decision about whom to work with and save money. Gather all your documents that will be necessary for approval.
Once you fill out the application form and are approved, you will be given a contract to sign so you can receive your funds. Make sure you read the terms of your loan to ensure there are no surprises down the road. Get the answer to any questions you may have before you sign. After you sign the document, you wait until the funds are in your bank. This usually takes no more than one or two days, but some lenders may take a week to provide the funds.
Depending on the type of advance or loan you chose, you may not need to do anything until the estate is closed. This advance can give you the funds you need quickly, and at a low cost, so you do not have to wait for probate to be settled. It can give you peace of mind if money is tight because of the estate. It may also allow you to buy out other heirs for real property. Make sure you understand what a cash advance on an inheritance is and how it can benefit you today. Contact an advance company to request a quick no obligation quote and find the lowest cost option in just hours.