How the Probate Process Works
If someone in your family died recently, their estate may need to go through probate court before the inheritance can be dispersed. If you are a beneficiary of the estate, you may be wondering how long it takes to get an inheritance. 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 worth 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.
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Understanding the Probate Process
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.
With a large estate, it can take quite some time to liquidate all the assets, especially if real estate is involved or the decedent owned a business or was a partner in a company. They may have held stocks or other investments or even owned collectibles and other property of value that must be assessed and sold. Each state has its own statuses for the timeline of probate, but it must allow time for all known heirs and creditors to be notified and any unknown creditors to come forward. Once all creditors have provided evidence of a claim, the administrator must pay those claims before the heirs have any part of the estate. Federal and state taxes must be filed and paid as well.
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, or sell inheritance property until the estate is settled. However, there is a way for heirs to get money before probate ends. An inheritance advance, also known as an inheritance cash advance or estate advance, is one way you can get fast cash from part of your inheritance while the probate process is being completed.
Is This the Same As Inheritance Loans?
No, an inheritance cash advance is not the same as a loan. With an advance the funds you receive in your bank account are 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 Probate Advance, the funds can be available to you in as little as 24 hours.
The Benefits of an Inheritance Cash Advance
One of the benefits of getting an advance on your inheritance is 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 of 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 a portion of your inheritance is lost in probate due to other claims made against the estate or if the will is contested and changed.
Better Than Personal Loans
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 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 delated 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.
An Advance on an Inheritance is Paid Directly To You
Inheritance funding through an advance allows you, the beneficiaries, 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 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 inheritance cash advance 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 to 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, the money may be deposited into 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.
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How Much Does an Inheritance Advance Cost?
There is no initial cost to you for a cash advance on the estate or your part of the inheritance. Most of the companies you will deal with allow for a free quote with no obligation. They will ask for an initial application either online or over the phone and provide you with an idea of how much the advance will cost.
Unlike a traditional loan, you won’t make payments each month to pay back the funds. There is no interest, so you have no responsibility for the cost of the funding. Instead, the cost is provided as a fee, which will come out of the inheritance when it’s paid out. With this type of advance, the company stakes a claim on the inheritance, which is distributed to them before you receive your share. The fee will come out of that payment when the estate is settled along with the amount that was provided to you as an advance. Any additional funds in the inheritance will be given to you.
The fee for this service may vary. It’s based on how long the company must wait to receive the payout after providing the funds to you. These fees will vary based on the company, which is why it’s a good idea to compare your options. Just don’t let the cost of the advance be the only factor. Additional factors to consider include the reputation of the company, how quickly they provide funds and the process for approval before you decide on an offer.
Can an Executor Take Out a Loan?
Since probate can take months to be completed, there may be times when the administrator or executor needs funds to complete their tasks. If they don’t have money of their own or want to use it, they may need to take out a loan to cover these expenses.
It’s important to know that the executor cannot borrow from the estate for their own personal use. The only reason to borrow funds or get an advance from the inheritance is for the estate. A prime example is when the decedent had a house that the executor is now trying to sell. It may be outdated or in need of some repairs to get a decent offer for sale or to increase the value and help it sell fast. In this situation, it may be possible for the executor to borrow from the estate to pay for those repairs.
Requirements for Withdrawals
The probate court may require the executor to get approval before withdrawing any money or to provide detailed receipts showing how the money was spent. If the executor uses the money for personal use, they could be facing civil and even criminal charges.
If the executor is also an heir to the inheritance, they may feel they are entitled to compensation for the work they are doing. While executors may be paid for their efforts, they may not be allowed to withdraw funds early. To prevent any impression of wrongdoing, it is better to get a probate cash advance on their part of the inheritance until they can settle the estate.