What happens when you need money before the probate process has ended? The old solution used to be getting a personal loan, using your collateral, and repaying it before probate ends. However, that solution did not work for many beneficiaries or executors. It depended upon your ability to repay it, your credit score, and whether you had a job. That was true, even if you would get a substantial inheritance or handle a considerable estate.
Fortunately, there are several ways to get access to money that is in probate for executors and beneficiaries. Determining which one is correct for you depends on your individual circumstances. However, understanding all of them can help you make the best, most informed decision.
You can get a probate advance, which is also known as an inheritance advance. With an advance, a company purchases a portion of your estate. Once that transaction is completed, you no longer have any obligations to the funding company. Instead, when the estate is settled, they will get the money from the estate. They charge a fee for this service, but you do not have to make payments or pay interest. Probate advances are probably the fastest way to access money in probate; many companies can provide funds within 72 hours.
Inheritance loans are also known as probate loans. You get cash but pay interest and must make payments until you can pay off the principal. The longer probate takes, the more you pay. While this may work for some people, it can be tricky. Since you do not know how lengthy the probate will take, you cannot determine the costs of this beforehand.
Estate loans are a third option. They are similar to inheritance or probate loans but require you to use your property as collateral. They are the same as any other bank loan. You do not have to substantiate that you are a beneficiary because your property is collateral. You need good credit, a steady income, and valuable property to qualify for this loan.
Finally, you can petition the court for early distribution of estate assets. The court has the discretion to release some portion of the estate before the end of probate. However, courts will not do this unless the estate has cash assets and you can demonstrate a need for early distribution.
Categorised in: Educate Yourself about Inheritance and Probate Advances