So what is an inheritance loan? We get that question all the time. Inheritance loan really is not a loan, what it is, it’s actually a cash advance against an expected inheritance that you will be receiving.
What is an inheritance loan?
For example, if your are expecting to receive a fifty thousand dollar inheritance and the estate is already in probate, then what will happen, is you can actually sell a piece of that inheritance today and get some money now. Then wait for the rest of your inheritance until whenever the probate process closes.
It’s not a loan, it’s really an advance. What’s the difference there: a loan is something that you personally are going to have to pay back. Inheritance advance you personally DO NOT have to pay back, it is paid back directly from the estate itself. When the estate closes: one year or two months, whatever it may be down the road, that money is paid directly back to the investor involved. You still get to receive your portion of the estate that is remaining.
The reason it’s considered an advance is because you, as the person receiving the money, are not obligated to pay the money back. The money gets paid back from the estate itself. The investor who is involved with giving you the money, really is purchasing a portion of the estate from you and not setting up a loan relationship with you.
To sum up: inheritance loan is not a loan, it’s an advance, you’re selling a piece of your inheritance.
How much can be advanced?
Typically, for example in California, that amount is between 10,000 and 100,000 dollars. It can be more, it can be less and really the amount that can be advanced depends on the size of the expected inheritance, and that’s the only thing that typically effects it.
How long does it take?
So, how long does it take to get an inheritance loan or an inheritance advance? Typically, it takes between 3-7 days. The reason it doesn’t take very long is because, it’s really just a review of all the documents that can be provided by the attorney involved with the estate or the executor. That’s pretty much to verify that the estate exists and that there are enough assets in the estate to make sure, that the investor or whoever is providing you the advance will be able to get paid back once the estate finally does close.
Typically, it takes between 3-7 days
That again, really depends on the documents that are provided, how quickly those documents can be provided to the investor. Then just how long it takes to review those make sure everything’s in order. It’s not dependent on running extensive credit checks or employment checks. It’s all based on the estate. The money gets paid back directly from the estate, it’s not something that gets paid from you. That’s again the difference between a loan and an advance, this is an advance. The investor gets paid back out of the estate, if the estate never has any money in it, then you still don’t have to pay it back. The investor takes the risk that they will get paid back from the estate.
In short, it really is between 3-7 days from when you contact a company to when you actually receive your money.
How much is probate loan process?
Probate loans in California typically cost around 3-7% of the total value of the estate. The fees involved in the process are:
- Court costs
- Executor’s fees
- Surety bond
- Appraisal fees
- Legal and accounting fees
Also, keep in mind that if there is a “Will contest” expense can run even higher.
The inheritance probate process
If you are an heir to a current probate and you want a cash advance now for the money you have coming to you, you really don’t need to wait for the long drawn out probate court procedure to receive you and inheritance cash advanced.
When an heir finds out they will be receiving an inheritance, they expect to get it within a short amount of time. But that’s not usually the way the probate process works. A more accurate description of the probate process is that it’s unpredictable and the length depends on how large the dissident’s estate is, and if they left their papers in order, or left any at all. Other factors include: whether the will is contested or uncontested, tax issues or any other unforseen issues.
Appropriate process begins when someone dies. The person may have died intestate, which means ‘without a will’ or testate – ‘with a Will’. Any of the case the dissidence assets must be transferred to the person designated in the will, who is called the personal representative, executor or administrator. If the person dies without a will or the state decides the will is invalid this estate is transferred according to the state’s law. Before all their belongings are distributed all their assets must be accounted for. Also all taxes debts and other monetary obligations must be taken care of. This can add quite a bit of time to the process. Some probate issues last well over a year if not longer. In the meantime the years waiting for the inheritance can be financially drained, even though they have money coming to them.
An inheritance cash advance can be the perfect solution to this problem. When you receive a probate advance, all you do is assign a portion of a future inheritance to an investor and they get the reimbursement from estate when the probate is closed. The process is easy to do and usually one of customer service representatives will guide you through every step of the way. There is no obligation on your part to apply.
Why do estates have to go through probate?
Any assets owned and titled in the name of the decedent at his or her death will need to be probated. Which also includes any assets which are transferred pursuant to the decedent’s last will and testament.
Do you always have to probate a will? Well, not necessarily. It depends on what the deceased owned at the time that he passed away, or she passed away, and it depends on really how they owned it. The process of probate is taking the deceased’s name off of an asset, and putting the heir’;s name on the asset. So if the deceased had a home, then more than likely we’re going to have to go through probate. If the deceased’s name is on the deed, to take the deceased’s name off the deed, and to put the deed in the name of the heir. If the deceased is married, the heir is going to be typically the spouse. Not always the spouse, but typically. If the deceased didn’t have a spouse, then it may be some other person.
It could be a charity. Taking the deceased’s name off of an item of property is what probate is all about. If the item of property doesn’t have a title, so my couch does not have a title. I don’t have to go through probate to transfer my couch to somebody because my name isn’t on the couch. My name is not on my refrigerator. My name is not on my TV. My name is on my car.
Sometimes you have to go through probate to transfer a car into the name of your heirs, and some states like California provide a very informal way to transfer automobiles from the deceased’s name into the family’s name.
Things like insurance, retirement accounts, don’t go through probate unless for some reason the estate is named as the beneficiary.
The following assets are not subject to probate:
- Joint tenancy assets
- Assets held in a trust instrument
- Big trust accounts
- Assets with a designated beneficiary
Important things to consider about probate loans
You’re probably an heir with an inheritance that’s in probate or about to go into probate. You, like hundreds of others out there, cannot wait the 12-24 months it takes for the probate process to release your inheritance. Whatever your circumstances you’re looking for a cash advance right now.
There are several things that you need to know before you apply, because there are several scams out there in California, that will take your money. For example, using the term a probate loan it’s sort of a misnomer. The term loan is not correct, because really you’re not getting loaned the money you’re getting advanced the money. It’s a buy-out of a portion of your inheritance.
Another thing you need to know that you’re not at risk. If for some reason the probate comes back and there’s another claim on it and there’s nothing left, well the advancing party cannot come after you.
To apply for your Inheritance Cash Advance
- Fill out and submit the on-site Inheritance Cash Advance application form, with basic details concerning your Inheritance as well as the dollar amount of the Probate advance you are requesting.
- In order to qualify for receiving your Probate advance, you simply need to be able to verify that you are an intended Heir of an Estate in Probate – and are duly listed as an Heir to an Inheritance of an Estate in Probate.
If you are an Heir of a Probate, you do not have to live in the same state that the deceased lived in before the Estate went into Probate. If you are a Beneficiary of a Trust or Trust Fund, you do not have to be living in the same state that the deceased lived in.
- The necessary paperwork associated with your Estate in Probate – your Inheritance Cash Advance will typically be approved within 72 hours or less, once your Probate cash advance has been approved by an Inheritance Cash Advances funding officer in California.
- Usually, no sales commissions are ever taken out of your Probate cash advance.