Beneficiary Loans: Don’t Wait – Get your Inheritance Now
If you’re the beneficiary to an estate of a loved one through a will or trust, you may wonder what you need to do to access that money and when you will receive it. As you do some research, you quickly discover that it can take months or even years, in some cases, to get your inheritance. That fact can be disheartening, but there is a way to get the inheritance sooner.
Why the Delay in Your Inheritance?
Your inheritance can be delayed for several reasons. If the estate must go through probate court, it can take months before the assets can be distributed. The probate process is a lengthy one, with numerous delays extending the timeline.
If you are the beneficiary of a trust, you may not receive your inheritance until the will stipulates. Sometimes, the grantor creates a will that prevents the beneficiary from receiving their inheritance until they reach a certain age or milestone, such as graduating from college or getting married. In situations like these, it can be many years before you have access to your inheritance.
Your inheritance may be delayed if anyone is contesting the will. The court will need to hear any evidence presented to determine if the will is valid before any assets can be dispersed.
How to Get Money Now
Depending on your situation, you may qualify for a beneficiary loan. These loans are designed to give you a portion of your inheritance before it is released through probate court. If you don’t want to wait or can’t wait for your inheritance, you may benefit from beneficiary loans.
Perhaps you were a caregiver to the decedent and haven’t been able to work for several months or longer as they depended on you. Now, you don’t have their assets to help pay your bills, and you haven’t been able to get a job. Your inheritance would help you stay afloat until you can get back on your feet. It’s situations like these where beneficiary loans are useful.
Who Qualifies as a Beneficiary?
A beneficiary is someone who inherits something from another person. They may inherit through a will or be named on a document for beneficiary designation. The person may be named as the beneficiary in a life insurance policy, bank account, retirement accounts, investment accounts, and on vehicle titles.
There are two types of beneficiary designations. The primary beneficiaries are the people who will inherit first. Contingent beneficiaries only inherit under certain circumstances, such as when the primary beneficiary dies before the estate owner or is unable to be located. The contingent beneficiary receives the portion that would have been allotted to the primary beneficiary and all other beneficiaries receive their normal part of the inheritance.
How Do Beneficiary Loans Work?
Banks don’t provide a beneficiary loan. Instead, you must find a funding company that offers this type of loan to heirs. The amount the lender is willing to lend depends on how much the inheritance is worth and when it is expected to be distributed.
All you need to do is to apply for loan approval with one of these lenders. Once you fill out the application form, the lending company will determine how much you qualify for. They will send a loan agreement for you to sign before funding your account.
What to Know About a Beneficiary Loan
In some ways, these loans are similar to a personal loan or cash loan. You receive money, which can help with your current financial situation. However, there is a big difference in how these loans are approved. Instead of looking at your credit rating or credit history, they look at the inheritance you will be receiving.
Bad Credit and No Credit Qualifies
This benefits you because you can have a bad credit history and still qualify for a loan. With no credit check, your financial status isn’t important. Many of these loans are known as non-recourse, which means that the risk is on the lender because you aren’t required to pay it back. They will be repaid once the inheritance is dispersed.
No repayment plan is needed and no credit checks to prevent you from getting approved with this type of loan. Interest rates will often depend on how much you are seeking and how long it will be before the loan is paid back with your inheritance. You can also compare lenders to compare the annual interest rate to get the best deal.
The application process is simply you providing information about yourself and your expected inheritance. You can often get an answer in just a day or two once all factors have been considered. You are under no obligation to accept the funds even after filling out the application. The amount you are offered will depend on the value of your inheritance. The lender will submit their offer as a portion of the value.
You won’t have to worry about whether you can afford the loan or will need to repay it since the lender will receive payment with a lump sum when the inheritance is distributed. Their fees will come out of that payment as well.
Get Help Regardless of Credit Status
You can have the money you need now, cash in hand. It can replace lost income and provide jobseeker support until you can find a job or receive the money from your inheritance. When you need assistance to help get your budget back on track, it can be helpful to find a loan for beneficiaries that is secured by your inheritance.
Get the process started by filling out an application form and find out how much you can borrow. With no repayments, your assets are protected, and you can have the cash you need to replace your income. If your inheritance is delayed and you need cash right away that you don’t need to pay back, consider how one of these loans may meet your needs.