The loss of a loved one is usually painful and results in several obligations that require your immediate attention. Furthermore, this becomes more difficult if you are struggling financially, as the probate process is often complicated and can take many years to be finalized. Therefore, if you expect to inherit the deceased’s assets, you can opt to get a probate loan, which is an advance on your inherited property. The most popular types of probate loans are classified into two categories, that is, a loan advance on assets that you are expected to inherit as well as a loan that uses the inheritance as collateral for loan repayment in regular monthly installments. Additionally, probate loans are also known as inheritance funding, an inheritance advance, probate advance, or inheritance lending and are usually short term between six to 24 months.
How does a probate loan help you?
To qualify for a probate loan, you are first required to complete an application stating the exact value of the inheritance you are scheduled to receive. Consequently, the probate lenders will then evaluate to verify your statement as well as confirm whether you are the true heir. Once this is approved, the lender will provide you with an immediate payment that is less than the actual sum you were to inherit at the end of the probate if they believe they can make a profit from the agreement. Despite getting less than what was expected initially, you get your money sooner, and you are not mandated to pay back anything until your inheritance has been settled fully. Therefore, you should not have any worries that you are in debt since you technically that is not the case, but are instead waiting for your inheritance money to settle your finances.
However, you must never rush to take a probate loan, and here are a few things you need to ensure you get the best possible deal.
- Consult a financial advisor and an estate attorney:With the help of these experts, you will be in a position to understand probate loans as well as the economic and legal implications of your decision.
- Assess offers from numerous lenders:Make sure you get the best loan terms by going to multiple lenders and comparing the various proposals. Likewise, seek advice from your estate attorney or financial advisor before taking up any offer.
- Know your inheritance’s full value:Get help from an estate attorney to understand the total amount of money you are expected to receive and the time it will take you to get the payment.
- Inform the estate’s administrator:Notifying the administrator is vital so that they can provide all the required documentation as well as be ready for the probate lender who will be involved throughout this process.
- Consider possible alternatives:You need to first assess all the possible options before deciding to take a probate loan.
Getting a probate loan is an excellent way of relieving yourself from financial strain. This is because unlike banks, you are not required to pay a monthly interest until you fully settle the debt. Moreover, you are not mandated to pay back the money until you receive your inheritance, thereby making inheritance advance a viable choice.