After the passing of a loved one, you’d expect money to be the last thing on your mind. Surprisingly, this is almost never the case. With the unbelievably high funeral expenses, the financial aspect quickly comes to the fore.
If you live from paycheck to paycheck like so many of us do, you might be considering getting a loan to get through this terrible period a bit more comfortably. Still, a loan means you’ll be in debt for who knows how long, so it’s always better to opt for an inheritance advance.
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Don't Wait for Probate
What is an inheritance cash advance (probate advance)?
While it may sound like a loan, an inheritance advance is actually an assignment of interest. Here’s how it works:
- You have rights to something of value—inheritance, in this case—but don’t actually own it yet. When somebody leaves you something—be it money, real estate, or valuable items like works of art—you’re not the owner until the probate process is over, but you have a right to the property. You don’t have to wait for ownership; you can sell a part of the right itself.
- You choose to sell a portion of your right to inheritance. This does not affect any other heirs. You can only sell your share of the estate in advance.
- You receive the money, and the buyer of the right gets the part of the inheritance that they bought from you—nothing more and nothing less.
What is a probate loan?
There are two significant downsides to a loan that are not included in an inheritance advance:
- A loan includes a set date by which you have to repay it
- A loan is based on your personal liability
An inheritance loan includes a set date by which you have to repay it
When you take a loan, you and the lender agree on a date by which the entirety of the sum has to be repaid. If you fail to repay it by that time, the interest rates jump. In the worst-case scenario, the lender will legally prosecute you. The consequences of this go from the lender claiming your property to you being incarcerated for being unable to repay your debt.
If you opt for an inheritance advance, you don’t have to worry about this. You’ve sold a part of your right to the inheritance, and both you and the buyer are in the same situation now—waiting for the process to end so you can go your separate ways.
A probate loan is based on your personal liability
If you take a probate loan, you are personally responsible for repaying it. If you fail to do so, you and your property will suffer the consequences.
If you get an inheritance advance, you have nothing to do with that part of the estate anymore. You sold the rights, and it’s up to the buyer to collect their share when the probate process ends.
Don't Wait for Probate
There are several reasons a probate advance is a better option when compared to a probate loan:
- You won’t have to pay any interest or any additional fees
- There are no monthly payments or due dates to worry about
- You won’t have to provide a reason for requesting the funding to get one
- We don’t assess your eligibility based on credit scores
- You will wait next to no time for approval
An inheritance advance is, therefore, diametrically different from a bank loan. In truth, it is rather similar to a sale — you will sell a portion of the inheritance to us before you even get one. We will pay you for it, but we will patiently wait for what we bought from you until it is probated.
Anything is possible, however, an inheritance advance or probate cash advance is much more convenient than taking a loan from a bank!
A traditional bank needs collateral and credit checks to collateralize lending money. As a result, there are lots of hoops to jump through when it comes to getting a loan for your inheritance. Banks are typically not willing to take the risk of waiting on a probate case that can have many twists and turns which could ultimately result in the bank loosing money.
Secondly, with a probate advance you have the following benefits.
- You can use the money the way you want to — it’s not our business
- It doesn’t matter if you have a good or bad credit score
- There are no hidden fees — what we quote you upfront, that’s all you will have to pay
- The process is fast and easy — it takes as little as three days, and everything is done online
Probate Loan Vs Inheritance Advance Summary
While they may seem similar at first glance, a loan and an inheritance advance or otherwise referred to as a probate advance are entirely different. The requirements for receiving a bank loan are very comprehensive. For anyone in the probate process, an inheritance advance is an infinitely better option because many will not even be able to receive a probate loan from a bank based on credit requirements and the typical bank loan process.