If you are in the middle of a probate proceeding and you want or need to access your future inheritance now, you may consider getting a probate advance.
What Is a Probate Advance?
A probate advance is an immediate payment of a portion of your future inheritance. Rather than waiting until the probate process, which can be lengthy, is complete, an advance company will give you a probate cash advance in exchange for an assignment of a portion of your expected inheritance. At the end of probate, the estate pays the company instead of you.
Probate advances are sometimes called inheritance advances or estate advances. Keep in mind that these differ from probate loans and inheritance lending, as these types of arrangements require you to pay the lender back. With a probate advance, on the other hand, typically you do not make any monthly payments, you do not pay interest, you do not provide collateral, and you are not personally liable if the estate does not have enough money to pay the probate advance provider.
Why Is a Probate Advance a Good Idea?
There are many advantages to getting an advance during probate. For most heirs, which is anyone inheriting from an estate, a cash probate advance is attractive because you can get a portion of your inheritance right now as opposed to waiting for the estate to settle.
Probate Can Take a Long Time
The probate process can range anywhere from a few months to several years. Probate is the legal process of administering a deceased person’s estate. This includes proving the validity of a will (if there is one), inventorying and valuing the deceased’s assets, paying off debts and taxes, and distributing assets. The time is takes to probate an estate depends on a variety of factors, including:
- The state’s probate and estate administration laws;
- The estate’s size and types of assets;
- Whether there is a will;
- Creditors’ claims;
- Unpaid taxes; and
- Disputes amongst heirs, creditors, and executors.
While some websites give averages on the length of the probate process, it truly is different for each and every estate. An estate administration attorney may be able to assist in providing a probate time estimate for you.
You Know the Exact Amount of Your Payment
When you agree to a probate cash advance, you receive a set amount of money. If you wait until the probate process is complete, after all debts, expenses, taxes, etc. have been paid, you are gambling on how much you will actually receive in the end. For the probate advance company giving you the cash, they accept the risk that the estate may not distribute as much as they anticipate. With a probate cash advance, you get your money no matter what.
No Repayments or Interest
With a cash advance during probate, you do not have to repay anything. The probate advance company takes the loss instead of you if the estate cannot pay out the cash advance amount. Additionally, you do not make any interest payments on a cash advance since it is not a loan.
Use Your Probate Advance for Any Reason
You can use a probate cash advance for any purpose. Whether you want to buy a new car or pay off debts, there are no limitations on the use of your cash advance.
What Are the Disadvantages of a Probate Advance?
There are several disadvantages to probate advances that you should consider before making your decision.
Smaller Amount
A downside to a probate advance is that you may receive a smaller amount than if you wait for the estate to settle. What some companies do is provide you with the advance in exchange for your entire inheritance amount. In this case, the only way for the company to make a profit is to give you less than you are expected to inherit.
Also, companies typically charge a fee for the cash advance, so by paying for their services, you are potentially receiving less than you would if you wait.
Potential Conflicts
Introducing a probate advance company to the probate process may stir up conflicts among the heirs and the estate administrator/executor. The idea of allowing a third-party to purchase an interest in the estate could upset the other parties.
Unregulated Industry
The probate advance and lending industry is not highly regulated. Only a few states have laws around probate lending. This is problematic for several reasons.
First, if you are involved in a dispute with a probate advance company, you may have limited recourse against them. Second, without regulation, some unscrupulous companies may take advantage of customers.
This highlights the importance of vetting the company you are using. Do not rely solely on the company’s costs for the advance, but consider their legitimacy and reputation when making your decision.
How Does the Probate Advance Process Work?
Each company has its own procedures and stipulations, but the overall process is generally the same.
Typically, you will complete an application, which requires proof that you are legitimately entitled to an inheritance. This is shown through copies of the death certificate, a will, letters of administration, and other documentation from the estate executor/administrator. You also need to provide proof of identification through a photo ID, social security card, and/or passport. Companies typically do not consider your income or credit when determining your eligibility for a cash advance during probate.
The company will review your application and all accompanying documentation to determine whether you meet their requirements for a probate advance. The amount of the cash advance will depend on how much you are entitled to and how much the company is willing to risk. Probate advance and lending companies consider whether there are disputes regarding the estate, what sort of assets the estate has, and whether there are any judgments against you.
If the company decides to give you a probate advance, you will typically receive the money within a few days of signing the agreement.
Remember, there are legal and financial implications to getting a probate advance. A financial advisor and estate administration attorney can fully explain how the advance will impact you.
Swift Inheritance Advance
At Swift Inheritance Advance, we provide cash advances to those waiting for their inheritance. You are entitled to your inheritance. With our probate cash advances, you can start using and enjoying your money now! Contact us today to learn more.
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