If you are named as an heir to estate that is in probate status, you are eligible for a loan or a cash advance against the estate and this is called inheritance loans. The legal formalities performed in order to validate the last Will of the deceased are termed as probate. In situations where there is an absence of a Will, the deserving heirs are identified by the probate proceedings and then the property and asset are distributed based on the laws of probate.
Usually you are eligible for an inheritance loan only if you are an heir to estate worth $15,000 or greater. The sources of funding are either private investors or an inheritance funding company. Private investors sometimes do consider lending cash advances even if the assets do not amount up to $15,000.
The inheritance companies do charge for their services but the amount is only deducted when disbursement takes place. Depending on the amount borrowed, fees can range anywhere between 10-40%. One very beneficial outcome is that the person accepting the loan is not liable to pay it back to the funding source. Repayment automatically happens when the proceedings are complete and the estate is out of probate.
It is not a risk free act to be providing you with inheritance loans. The funding source does have to take a chance because they would not be able to legally blame the requester in case the estate does not have sufficient funds to take care of the repayment. The only way out of this is to be able to provide evidence that proves that the recipient misguided the lender with false information with regards to the estate and its worth.
Inheritance funding companies are very meticulous in requiring original documents that prove the worth of the assets in question because it is highly risky to be going ahead without proper proof. Documents required are the death certificate of the deceased, copy of the Will in question and any kind of substantial information about the estate involved.
The inheritance funding company will verify the identification of the recipient and will also request for the contact information of both the probate lawyer and the estate administrator. They will also make enquiries and confirm the recipients authenticity before going ahead with the case.
The company might also require documents such as inventory statement, petition for probate and appraisement statement. A sales contract may be required in case a real estate is used as collateral. Personal information such as credit report may be required to check if the recipient has any outstanding tax or pending bankruptcy which may come in the way of the repayment of a loan.