Monday, 15 September 2014

The Basics Of Inheritance Funding

By Kerri Stout


Following the death of a loved one, there is a somewhat lengthy process that comes with carrying out the estate disbursement detailed in a will. Probate court must certify the will and address any issues that may be raised by anyone contesting all or part of the will. Inheritance funding is a type of loan that provides an advance on funds that are left to a beneficiary.

An heir is the person who is designated to receive money or property from the deceased. Receiving funds, in this instance, occurs as an advance or loan against the amount you are set to inherit. The probate process can take some time to get through even when there are no problems with the will or anyone contesting. There are companies that offer financial assistance while you await the closing of the case.

You should understand that this funding is not always in the form of a loan. It is an advance on some of the money you are inheriting. The company charges a fee for this advance. Advances do not have interest that accrues. After the funds are released by the court, the company deducts the amount that was advanced and the fee from the 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.

Regardless of which type of method is used, you will need to fill out an application for the company. You will be required to submit documentation regarding the amount you are due to inherit. In many cases, the company will require contact information for the probate lawyer. Once you have provided everything the company needs, your application and documentation will be reviewed.

The review process can take anywhere from a few days to a couple of weeks. A decision must be made about whether the company will approve your application and how much they are willing to advance to you. It is important to understand that you may not get as much as you request. In many cases, the company wants to make sure you will have some money left when probate court is finished.

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.

Getting funding on what you will be inheriting can be helpful in taking care of financial needs. It is specifically helpful if there was not a life insurance policy, or when the insurance company is taking too much time to disburse funds. Be sure to read your contract carefully and, if possible, have your lawyer look it over as well.




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