Get Your Estate Loan Quickly
For those who are the heir to an estate or trusts, you may be anxiously waiting to access your portion of the inheritance. Unfortunately, everything may need to go through the process or probate before funds can be distributed. If you need money now, an advance on the estate in probate may be your best option, but you need to know how they work. You can compare them to an estate or probate loan for an heir to a trust or estate and decide what is best for your situation.
What is Probate?
Probate is a legal process in America to distribute the assets of an estate after the owner dies. A personal representative or executor is appointed to handle the tasks associated with probate. In many cases, it must be approved by the local court before any funds can be distributed to the living heirs. There are several inheritance process steps to take.
Probate includes publishing a notice for all interested parties, paying creditors, filing tax returns and other statements, and determining market worth of all assets with an appraisal for real property, including real estate and any commercial property in the owner’s name. The executor may need to appear before the court multiple times during this period and meet other obligations. The deceased may have even owned a small business that must be liquidated or assigned to a new owner or investors or accounts in which they were investing.
How long does probate take can be a complicated topic. This probate hearing process can range from a few months to years. Everything must be completed before the court will approve the distribution of the remaining assets to the heirs. This may be a long time to wait for money that technically belongs to you.
Why You Might Need Money Before Probate is Closed
Even if the deceased had a will for their estate, it can be months or possibly even years for the process to be completed. If one of the heirs disputes the will, the court will need to determine the validity of their claim. Creditors may come in and claim debts that the executor must repay. All of these situations and others can delay the process and expand the timeline before compensation may be made to the heirs.
If you are the personal representative of the estate, you may find you need available cash to do your job. You may need the money to take care of the non-cashassets, keep the business running or to pay certain fees until the inheritance is released. If you don’t have enough cash flow on hand, you may need to find a source to borrow it. While you can get small business administration loans for a business, it is often not an option when the business is in probate. Yet, you need cash to gain more revenue unless the business closes.
If you were the caregiver of the deceased until their death, you may have incurred expenses that must now be paid from your budget. Many family members take care of elderly parents or others at a cost to themselves. Funds from an inheritance can help you recover those kind of losses to your finances. You may think of an estate loan as a way to help you out until the estate is settled. However, a loan is not always as simple to obtain as you might expect.
Can You Borrow Money from an Estate?
Since the money from the estate isn’t yours yet, you will have a difficult time borrowing money from it. You can try to get a loan, but most banks won’t lend money on collateral that isn’t in your name. For instance, you wouldn’t be able to get a real estate loan on a house in the estate because you don’t have the title in your name. Real estate loans are generally made using the title as collateral. You have no equity in the house because it doesn’t belong to you until probate is closed.
You could get a personal loan or borrow against your retirement, but in each of these situations, you couldn’t use the estate as collateral. Another option is to find hard money lenders who will provide an estate loan. They are also known as probate loans or an estate loan. They provide money based on your inheritance. You may be required to make monthly payments until probate is closed, but you will have the money while it’s in process.
You can use an estate loan in any way you want with no restrictions. Use it to pay income tax, get out of debt or to take a vacation or buy a new car. You don’t need a house or any real property as collateral because lenders will look at the inheritance when determining approval and amount you qualify for. You will most likely be paying each month on the balance until the estate is settled, at which point you can pay off the balance and be out of debt.
Get Money Early with a Cash Advance
- Estate loans – these are loans given to beneficiaries of a will. The lenders may charge interest and require regular payments just as with any other loan. If you choose this route, know the loan terms and the loan amount you qualify for in the disclosure. The loan will need to go through underwriting as with a traditional loan.
- Estate cash advances – with this option, the person receives money for a fee. The funds do not need to be paid back until the inheritance is released. The company will buy into a portion of your inheritance, which offers you security. This option is becoming more common for heirs from California to New York.
An estate cash advance is often less strenuous on the person than an estate loan because they are not obligated to make monthly payments on the money. They do not have to worry about loan rates or use their credit cards and accrue interest. They do not need real property or other collateral to guarantee a loan. Before you decide to get an advance on your inheritance, you need to understand how the process works.
You will often hear of estate loans and estate cash advances used interchangeably, but they are two different programs that allow you to access a percentage of your inheritance early. When searching for a finance company or lenders to give you money on your inheritance, make sure you know the differences between the two and how each one works. You want to choose the one that is best for your situation.
How You Can Get a Cash Advance or Loan
The steps to get an advance or estate loan are quite simple. You apply for a cash advance just like you would with any loan or other financial product. You would fill out a loan application to request funds and provide some basic information about yourself. You can go online to a secure website, call or fax or email an application to many of these finance companies. Once you receive approval for the advance, you can get the funding in your account at a bank in just a matter of days. Some financial companies pay in two or three days while others may take closer to a week. It is important to provide information which proves you are the heir to an estate. You may be asked to gather a copy of the will, a certificate of authority if you are the personal representative of the estate and a death certificate for the owner of the estate.
An answer for approval or rejection is usually given in just a couple of days for the cash advance, depending on how quickly the information is provided. The financial organization will review several factors for your approval, but they do not ask for employment information or a good credit history. The approval is not based on you but on your inheritance.
With the estate loan, you will need to be approved. Lenders will look at the estate and how long it is likely to be in probate. You will be carrying debt and paying each month until you have your inheritance and can pay it in full. In some ways, an estate loan is similar to a personal loan. Until the estate is closed, you have no other means to pay the loan. You will want to know the terms of the lender to ensure you can afford the loan. You may find some basic information on the advertiser disclosure or the website of the lenders.
What Does a Cash Advance Cost?
Various financial companies offer cash advances at different costs. They generally charge a fee instead of an interest rate. The fee is based on several factors, including the risk involved, the creditors involved for the estate, how many heirs will be dividing the property and how long it is expected to take to close the estate. It is like an origination fee for other loan types. It is important to know the fee usually comes out of the inheritance, and you do not need to pay this upfront. This is one reason that a cash advance is more affordable than more expensive financial options when you need money. With an estate loan, you must look for the best probate loan rates. You are basically selling inheritance property, so you want to get a good deal. At the same time, you should be cautious in avoiding an inheritance scam.
Important Considerations for a Cash Advance
When considering a cash advance on your inheritance, you must compare costs between companies. You want to find the company with the lowest cost. Of course, a lower fee is not the only consideration, but it is an important one. You also want to find out what the minimum inheritance must be to qualify for an advance. Many companies require your portion of the inheritance to be at least $15,000, but each company is different.
You will also want to find out the maximum amount you can receive. It may be a percentage of the amount you are expected to get from the estate. This is similar to a LTV or loan-to-value ratio on other loans. For example, a company may provide funds up to 50 percent or even 75 percent or higher of the inheritance while others will cap it out at 25 or 30 percent. Often, there will be a maximum up to $50,000 or even $250,000, but it can vary by finance company so ask about the bottom line when you apply if there’s a certain amount you need to get.
Make sure you know the terms of the advance before you sign the documentation to accept the funds. With a cash advance, the company receives the repayment directly from the estate and there is no need to refinance. They file all the paperwork so you do not need to. Once the company receives their money, any balance left over is given to you. Find out if there is the option of prepayment and if you get a discount. Some companies will allow you to pay early or they may provide a discount if probate is settled earlier than expected.
Don’t forget to ask about prepayment penalties. Make sure you do your due diligence and research any companies you consider. You can read their testimonials, annual privacy policy, blog and other information on their site before you choose one. You may feel even more comfortable speaking to a live person. Pay attention to any negative information to protect yourself from obligations you cannot keep just as you would with other types of financing.
Benefits of Getting an Estate Cash Advance
- You don’t need perfect credit or a high credit score or a certain income. Lenders base their decision off the inheritance rather than your financial history. You don’t even need equity in a property or other capital. Some finance companies won’t even check your credit report while others will review it for judgments against you that might affect your ability to receive the inheritance.
- Approval is often quick, so you get your money faster. The lender looks at the documents you provide about the inheritance and determines the fee for the funds. They may notify you in a day or two. Once they contact you to say you are approved, you often get the money in a matter of days instead of weeks. Even an estate loan can take longer for approval.
- You can use the money in any way it is needed. You are able to use it to pay bills, take a vacation, pay off an existing mortgage or other real property, make a large purchase or remodel your house among other uses.
- You do not have to pay back the money, so you are not the same as a borrower for one of the personal loan programs or even an estate loan. You are not responsible for making a balloon payment. The finance company will get the money from the inheritance when the funds are released. Terms are fixed when you sign the contract and cannot change.
- This option is non-recourse. It means that if something happens to the inheritance after you are approved and receive the money, you do not have to come up with the funds for repayment. The finance company is the one that loses out rather than you. This makes an estate advance a low risk while the finance company buys into your inheritance. However, you do not lose the rights to the rest of your inheritance once the estate is closed.
As you can see, the benefits for getting an estate cash advance over an inheritance cash loan if you have an inheritance are many. It is one of the simplest, most affordable options for getting money when you need it. You do not assume any risk if probate takes longer or if things change in the estate once the advance is approved. All the risk is on the finance company if a new creditor comes in and takes more or all of the estate. They lose out on payment if the will is disputed and changed in court. They cannot seek action against the heir who received the advance because they are not responsible for the repayment of the funds. Probate Advance provides cash advances on estates. With this option, the borrower doesn’t have to worry about the terms of a loan, since the inheritance funding isn’t a loan. Instead, it may be seen as the lender purchasing an interest in your portion of the inheritance. What this means for the customer is that they don’t need to pay interest on the money they receive as they would with an estate loan or other type of loan. It’s also a non-recourse option which protects them if the terms of the inheritance change after the contract is signed.
Consider an Estate Cash Advance Today
If you are the heir of an estate that has been opened and in the probate process or is being opened now, you may qualify for an estate cash advance. Consider getting started by applying for an advance to help you out until the inheritance funds are available or show you how to refinance an inherited property to buy out heirs.
There is no obligation to accept the advance on inheritance once you apply. There is no risk to you if you are approved, making an estate advance one of the safest, most affordable options. You don’t have to be concerned about creditworthiness, selling land or other property or coming up with a down payment. Think of it as an investment in your future. Learn the details and ask questions when you call the agency before applying. You can discover the requirements and prepare yourself for the process with just a quick phone call. The agents have the expertise to answer your concerns. Find out today if you can get an advance on your inheritance to make life a little easier during this difficult time.
