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Thursday 11 September 2014

The Basics Of Inheritance Funding

By Kerri Stout


When someone dies, it often leaves family members with financial difficulties. Life insurance pay outs, if the deceased even had a policy, can take some time. Unfortunately, the same is true with will and inheritances. Before inheritances can be distributed, a court must review and certify the will. Depending on the volume of cases the court has, the number of beneficiaries and any other interference, the probate process can take some time. Inheritance funding is a means of providing financial support while you await the will's release from court.

The heir, or beneficiary, is the person noted in a will to inherit property, money, or both when the principle person dies. For inheritances, loans or advances are available on monetary amounts. Companies that provide this service know that wills can be tied up in probate for months. Instead of suffering financially, these advances and loans provide relief.

Advances and loans are two forms of financing available. An advance, as the name suggests, is when the company gives an amount of money to you in advance of the release of funds from probate. These types do not accrue interest. Once the court releases funds, the company deducts what it advanced from the inherited funds.

Another type is a loan. The lender provides you with a loan amount that you are approved for based on what you are supposed to inherit. This type can work similar to an advance, but there is one big difference. Lending companies tend to charge interest and may also charge a slew of fees as well.

Filling out an application begins the process. The company will need specific details and documentation about the inheritance and probate process. It will also be necessary to provide information about the probate lawyer. He or she may also be required to turn in some legal documentation from this point, everything will be reviewed.

If approved, the company will tell you how much they are loaning or advancing, along with fees that are being charged. The approval process can take as little as a few days or as long as a few weeks, often depending on the complexity of your case. Be aware that the amount the company approved you for may not be as much as you requested.

Pay attention to all the details in your contract agreement. Look closely at the repayment terms. If the company is providing you with a loan, it is likely that there will be a date set for payment in full. The company may opt not to deduct the total loan from what you inherit and you will be required to repay it out of pocket.

These advances and loans provide beneficiaries with the aid they need while they are waiting for the probate process to come to an end. Regardless of your circumstances, this financial assistance is a means of accessing needed funds. It is a good idea to have the probate lawyer assist you and examine your contract before you commit.




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