Inheritance Loans

There are lenders who provide loans for the beneficiaries of an estate which is held in probate. The beneficiary will have to provide the lender with both personal information and with the details of the estate. Once the loan is granted there will be no interest accruing on the loan, and no note due--the loan is automatically repaid through the estate when probate settles. In order to apply for an inheritance loan the beneficiary's credit report will be obtained. If there are outstanding judgments, liens, or negative payment history on the credit report the cash advance on the inheritance will usually be denied.

What is probate?

Probate is a legal term for the court process which must be gone through to prove the validity of a will. This legal process ultimately decides the distribution of the estate of the deceased. In probate court the distribution of the estate to heirs and beneficiaries is decided. Probate is also the method by which any taxes which are owed on the estate or any debts owed by the estate to creditors are paid.

What fees are involved in probate?

There are many costs involved with probate. These usually include but are not limited to the following: The hiring of lawyers to ensure the legality of the proceedings, filing fees and court costs, and publication of a legal notice to notify anyone who could have an involvement in the estate. If there is real estate involved there will be additional costs, such as mortgage payments, taxes, repair or maintenance costs, payment to property insurance, and utility bills. This can all add up to quite a large and potentially overwhelming expense long before any portion of the inheritance is obtained.

How long does probate take?

This depends on many factors. If there is no valid will, or if the will is being contested, the process could take years. Even with a legal will in place the process will likely take a few months or more.

Why does probate take so long?

Probate court is a legal proceeding in which the distribution of the deceased's estate is decided. The larger and more complicated the estate, the longer it will take. If there is no will in place, the legality of the will is being questioned, or the heirs are disputing the distribution of the estate as delineated in the will, the court will need to investigate and ultimately decide on the distribution-a process which could be lengthy and costly. The court must also ensure that any debts due on the estate are settled and that any taxes due are paid. Creditors with claims can tie up the legal proceedings for years.

Cash advances can range from $10,000 to $100,000. In general, advance inheritance payments will be up to 30% of the anticipated distribution of the beneficiary. The loans are not greater than this due to the risk assumed by the lender. If insufficient funds remain in the estate to pay back the loan after the distribution of the estate, the lender must take the loss-the heir is not responsible.

Advance inheritance cash distributions usually occur within 3 to 5 business days after the documents provided by the beneficiary have been verified by the lender. This time estimate may vary depending on the lender and on the amount requested by the beneficiary.

As when obtaining any loan, it is important to research the lender carefully. Be sure to check the Better Business Bureau to make sure the company is legitimate, and that there have been no complaints or legal issues filed against them.