Advance inheritance funds are provided by cash lenders and private investors to beneficiaries entitled to money held in probate. When a person dies everything they own is transferred to probate. The exception to this rule is when the decedent executes a Revocable Living Trust.
An estate executor oversees the estate and is responsible for taking inventory of assets, paying outstanding debts and filing a final tax return. Estate assets are typically held in probate for a minimum of six months. In some cases, probate can take three years, or longer, to settle.
Applying for advance inheritance is similar to applying for a loan. However, no interest is charged and the advance is not repaid by the beneficiary who receives it. Instead, advance inheritance monies are reimbursed to the funding source when the decedent’s estate is settled.
In most cases, funding sources provide inheritance cash advances when beneficiaries are entitled to $10,000 or more. However, some cash advance providers are willing to work with heirs whose inheritance is as small as $2500. If you are entitled to less than $10,000 in inheritance money, seek out private investors who specialize in this niche.
When seeking advance inheritance funding, beneficiaries are required to provide personal information such as their date of birth and social security number, along with documentation pertaining to the estate.
Funding companies will require the name and address of the Estate Executor and attorney handling the estate. A copy of the decedent’s Last Will and Testament, Petition for Probate and death certificate must be provided. If the decedent owned real estate, the lending source usually requires a copy of the listing agreement or sales contract, along with evidence of property insurance.
Funding sources will obtain a credit report to determine if the applicant has judgments, tax or creditor liens, child support or bankruptcy proceedings which could interfere with payment of the assignment.
Once documents have been verified, the funding source will distribute advance inheritance funds within 3 to 5 business days. This timeframe can vary depending on the amount of the advance and procedures instituted by the funding source.
Private investors and funding sources that provide cash advances for forthcoming inheritance assume considerable risk. In some instances, there may be insufficient funds to repay the advance. When this occurs, the funding source absorbs the loss because the beneficiary is not responsible for repayment of the advance. Additionally, the funding source must wait until the estate is settled to receive a return on their investment.
Inheritance cash advances generally range from $10,000 to $100,000. As a general rule, advance inheritance cannot exceed 30-percent of the beneficiary’s anticipated distribution. Once beneficiaries agree to the transaction they assign their inheritance rights to the purchaser in exchange for the upfront cash payment. Typically, a fee is charged and deducted from the advance.
