When you are entitled to some inheritance that is in probate and you are in need of funds, you can opt for a loan against your inheritance provided by inheritance cash programs. The Will by the decedent is validated by a process called as probate. This process also ensures that the assets are distributed correctly.
In reality these advances that you can request for against your inheritance is not a loan but just an advance which will be repaid on settlement of probate. The process is long and tedious that can take days or even months to settle. A portion of their assets can be sold by the heirs before the inheritance is distributed. This process will fetch them money.
If individuals or heirs have some debts or financial commitments they can use the cash advance to pay it off. These funds can be used for personal uses such as taking a vacation, investments, tuition expenses or college expenses.
One must be aware that there are fees involved in obtaining a cash advance against inheritance. There are rules that state that the loan cannot be more than 30% of the total inheritance value. There is a lot of risk involved in providing cash advance against inheritance. The funding companies will need to wait till the settlement of probate and even then the estate may have insufficient funds when settled. These are chances that the company will have to assume and take into consideration when approving a cash advance. In circumstances where the estate is unable to repay the advance, the company cannot initiate any legal proceedings if and only if the recipient has been truthful in furnishing information while applying. This is why the funding companies requests for every bit of information regarding the beneficiary as well as the estate.
There are a few documents that need to be presented when applying for cash advance. A copy of the Will and the death certificate of the decedent are just a couple of many other documents that may be required. You would also be required to provide the contact for the estate administrator. Your credit reports will be verified to ensure that you are free of liens and to see if you owe taxes or child support. If any of these conditions exist your application may be rejected.
Generally these funding companies provide cash advances only if the heir is entitled to $15000 or more. The inheritance rights need to be assigned to the company and the process takes anywhere between 5 – 10 business days.
The regular cash lending companies do not get involved with cash advance against inheritance as it is too much of a risk. You need to seek the help of companies specialized in inheritance cash advance.