If you recently had a loved on pass away and are waiting to receive your rightful inheritance because of the long and arduous probate process, you might have looked into receiving a loan. Many estate heirs find themselves in this position and it can be difficult to pay for necessary things like legal fees, funeral costs, and home expenses of the decedent that may arise.
New Yorkers have spoken about the financial ruin caused from covering co-op fees while waiting months or even years without relief in sight.
Even worse, probate courts have backed up even further a result of the pandemic which has been widely covered by newspapers all over the country. If you’ve found yourself or a loved one in this unfortunate circumstance, we’ll bring you up to speed on everything you need to know about probate loans, and why it might be easier for you to receive an advance on your probate, instead of a traditional bank loan.
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What Do You Need To Know About Probate Loans?
The first thing to know about probate loans is that most probate loans are not actually loans. Loans are many times secured against an asset or require a credit check. When you receive a traditional loan from a bank or from a credit institution, they are securitized and underwritten.
For this reason, many people opt for a probate advance instead of a traditional probate loan because they do not meet the requirements for a bank loan and the time, paperwork and credit makes a probate loan untennable.
Probate advances, on the other hand, are an advance on future inheritance proceeds which do not require credit standards. When it comes to trying to get a loan, many times people that have an inheritance in probate do not have sufficient credit to be able to receive a typical loan.
Sadly, the passing of a loved one comes with lots of expenses, like fixing a decedent’s house that needs to be repaired before it’s sold or handling funeral expenses. Typically banks will not lend for expenses such as these if the heir seeking the funds does not have the appropriate credit score.
In a nutshell, this is why probate advances are a great funding vehicle that many heirs decide to take advantage of.
If the estate is of enough value, they can sign over the rights to their portion of the estate, or a percentage of their portion of the estate in exchange for immediate funds to handle expenses. In fact, many times an inheritance advance is actually referred to as a probate loan, inheritance loan, or estate loan even though it’s really just a cash advance on an estate that has been delayed by the probate court process.
A probate advance or inheritance advance is something you might want to consider if you have recently received an inheritance but it is stuck in the probate court process. Dealing with the death of a family member can be difficult, especially if you were financially dependent on them. If anything that we’ve detailed seems like it explains your personal situation, we’ll tell you everything that you need to know in this article:
What is a probate loan?
A probate loan or estate loan is very much like a home equity loan on an inherited property. A bank will look at your credit and the underlying real estate asset and make a loan against the asset. If you can qualify for a mortgage or home equity line of credit, the process of an estate loan would be very similar if not identical since that is what you are doing. An inheritance advance is a different source of funding where you do not haveto achieve the high standard, you are essentially selling your inheritance for immediate cash.
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What are the benefits of a probate cash advance as a funding source over a probate loan?
Getting a probate advance or inheritance advance does not have to be a lengthy process. At Inheritance Advanced, we have been able to get heirs and executors cash within the same day of submitting the advance application. If you have funeral costs, real estate property that needs to be fixed before it is sold, or attorney fees, an inheritance cash advance might make the process less stressful. Estate advances can help you get the funds you need right away for an advance amount that is safe for you and the estate. Here are some benefits:
- A probate advance is not a loan and thus it is not collateralized based on the equity like a mortgage
- No need to show personal personal income statements
- Credit score is not a factor.
- You can pay creditors, attorney fees, and settle the estate, rather than, coming out of pocket.
- You can keep the tax benefits.
- You can buy out other heirs if that is what you choose to do.
- No interest needs to be paid on the money you receive, you are exchanging immediate funds for your estate share
- You do not need to make monthly payments to pay back the money, it happens in a lump sum once the inheritance is complete
- There are no hidden fees or charges to be paid up-front
- The finance company handles all paperwork regarding the advance and repayment. It’s a stress-free process
- The money is paid back from the inheritance when it is disbursed after the probate is concluded. We wait for probate, so you don’t haveto.
Sometime you may hear the term “probate loan” or “estate loan” but these terms do not apply to an inheritance advance. This allows you to have the benefit of your inheritance without having to wait to go through the full probate process. This type of transaction is referred to by names such as an estate advance, inheritance funding, and probate advance- but they are all referring to the same process because it is not a form of inheritance lending and has many benefits that a loan can not offer.
How Does a Probate Advance Work?
When a loved one passes away, with a will, the person who is the executor gets to be in charge of the probate process. This involves taking inventory of the estate property, ensuring that all estate debts are paid, and seeing that all rightful heirs receive their rightfully owed inheritance.
If a loved one dies, without a will, an administrator will be picked to handle the estate and carry out duties in compliance with the state law where the loved one lived or where the real estate is.
Once again, the probate process can take up to years to fully process through which is why many heirs or executors of estates will seek an advance on their inheritance.
Step 1: Inheritance consultation
A compassionate of our Funding Executives will explain the process, pricing, and answer any questions you may have. The first step is to fill out an inheritance funding application where we determine the size of the estate, establish an understanding of where the estate is within the probate process and establish if an estate advance is going to be right for you based on the size of the estate and the number of beneficiaries. Since this is just an advance on the estate, it is not based on a personal credit score.
Step 2: Estate or Inheritance Advance Documentation
After the initial consultation, the next step is to review all of your probate case documents. We will begin this step by reviewing the position the probate is currently in and the will of the person deceased if there was one left as well as the beneficiaries. Our team will also review some basic estate information and paperwork to make sure there is enough in the estate fund to access the inheritance advance quickly. We do this so the process goes as smoothly as possible and so you can get cash in hand as soon as possible.
Step 3: Review the size of the probate advance and terms
Once you and our friendly team have completed the agreement for the inheritance advance and confirmed the estate assets while making sure you get your rightful inheritance share, then we wire the funds to your bank account of choice right to you. Just like that, a simple and easy process. Typically, this will take about three business days to get your inheritance advance or probate advance to you. Then, you can rest assured that you have the money you need to get you through these troubling times quickly.
Step 4: Receive your inheritance early through a probate advance
When the probate case is complete, the estate is ready for distribution. The ALI Inheritance Advance is paid directly out of your share, without affecting any other Heir, and the remainder of your inheritance is paid directly to you. No hidden fees, no extra costs, as simple as one, two, three. Inheritance Advanced also offers a rebate for early payment. Can it get any better than that?
Is a Probate Advance a good option for you?
We get it, you need to make sure that you are making the right decision, and understandably so. Here are some tips and advice you can take when considering a probate advance:
- Consult an estate attorney and a financial advisor – this way you can get all the information you need from a non-biased impartial person.
- Understand the full value of your inheritance – An estate attorney can help you understand what you are eligible to receive from the estate and how long it may take to get it.
- Notify the executor or administrator of the estate- this way they can provide you with documentation that is needed, just be prepared for the probate lender to be part of this process.
A probate advance might be a good option for you if you cannot wait for probate and need the money now. With that being said with a probate advance or inheritance advance you will get the money a lot sooner, in fact you may be able to receive $15,000 today instead of waiting months or years for your estate to go through regular probate.
One other good thing about probate advances is that you do not have to have a good credit score to be approved. That is not something we put into consideration when applying for an advance with us. We also do not dictate how and when you use the money you have received. You can finance a car, pay off a real estate mortgage, or buy whatever you would like – we do not hold it against you.
Probate Loan Questions
The length of time can vary but is often increased when real property or a business or LLC are involved, especially if a sale is necessary because there may be multiple owners and inherited properties. Each state has its own laws for probate which make it difficult to understand the process without an experienced law firm on your side who’s familiar with all the statutes that meet requirements in each different state–especially West Virginia versus New Jersey.
The lengths of time will differ depending on whether you’re dealing with real estate, businesses or limited liability companies (LLCs); as well as inheritances due to many partners owning land from previous generations. There are also individual states’ policies about how they handle things like this so hiring an attorney would probably benefit those unfamiliar with
Probate takes varying levels of time based on the complexity and size of the estate. Thus, the probate matter is largely based on the size of the probate matter. Because of the 90 day creditor time period and other steps in the process, even the fastest probates take 6 months. With court delays and extra complexities many probates last several years.
As a standard practice, traditional lenders including banks and credit unions do not provide probate, estate or trust loans. This is because they need collateral or credit in order to be able to meet the financial standards to provide a loan. By the point of loan processing it is usually too late to be helpful in the case of a probate or inheritance loan.
The process of Probate is one that legally disburses the estate left behind by a deceased family member or loved one who has an inheritance. An inheritance disbursement is often established when there was a will in place, this can also occur even without any wills if they had no beneficiaries to leave things for. You may be wondering how long until probate is settled and the answer varies depending on what needs to go through court! It could take anywhere from just months up to several years before all heirs are accounted for-the length of time dependent upon whether real property, business/LLC shares were involved; as well as if sales need taking into account due in part because these assets would have been transferred over during their lifetime which causes delays with issuing new
Many people in the probate process wonder if they can borrow money against the estate or if they should get a probate loan. A probate loan is a traditional bank loan. If you have good credit and could otherwise obtain a loan from a bank, then you can most likely get a probate loan. However, probate loans require credit checks and the same requirements as a traditional mortgage with an asset to back it up. Probate Advances on the other hand are fast and easy. Find out more about Probate Advances in our video below.
There are some tips to dealing with probate process. Here are some of them:
• Avoid the headache of sorting through an inheritance
• Save money and time by hiring a professional to help you with probate
• Gather all details for your estate quickly so you can avoid costly errors in doing it yourself.
The probate process takes time no matter how well prepared you are. If you can get a loan from a bank against your property in probate, then by all means, however, this process can be just as daunting as probate which is why many heirs and executors opt for a probate advance instead.
Yes, if you only need an advance equivalent to a portion of your estate instead of the entire estate, that is very possible. The average advance is $15,000 but ranges from $10,000 to $500,000+.
As we discussed in this article, there are lots of different names for probate loans, some of them are as follows, Estate loans, probate loans, trust loans, inheritance loans & Trust loan (Inheritance Loans) An inheritance loan company, can be hard to work with because the loan needs to be backed by real assets, like real estate. However, an estate advance is easier to achieve and is an important financial tool that can be used by heirs of an estate.
Borrowing against your inheritance is the same as receiving a probate loan from a bank and has all of the typical loan requirements. You can receive an advance on your inheritance immediately it is the same as you selling a portion of your inheritance to receive funds immediately.
You may be able to get a loan on a home in probate but it is difficult. The reason is because the house and deed are not technically transferred to the beneficiary until the probate is closed. Most banks do not lend money on an asset that is not in your name. An estate loan or probate loan is a more commonly used term which actually means an advance on your inheritance.
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Why Choose Inheritance Advanced To Help With Your Probate Advance?
At Inheritance Advanced, we care. We are compassionate and truly do our best to help you through a difficult situation. If you have any other questions that weren’t answered in this article about about a probate loan or inheritance loan, our trusted advisors are happy to clarify any questions that you might have. You can also look on our FAQ page for more easy answers. Inheritance Advanced has 1,560 happy customers and have advanced over 10 million in probate cash advances to earnest people who understandably need liquidity prior to the closing of their probate case.