Early inheritance is a term used by cash lenders and private investors to fund beneficiaries of legacy held by probate. When a person dies, all their property is transferred to the probate. The probate certification process can last from six months to three years, depending on the complexity and circumstances of the estate.
Getting pre-inherited rights is similar to applying for a loan. However, there is no interest on the advance payment and there are no notes to be repaid. Instead, when the probate is established, the cash advance payment will be repaid through the estate.
Sources of funds usually provide inherited cash advances to heirs entitled to a $15,000 or higher amount. However, some cash advance providers will work with beneficiaries with a succession of only $2,500. Beneficiaries of small estates often achieve greater success in obtaining cash advances through private investors who specialize in probate-certified estates.
When seeking advance inheritance funds, the beneficiary must provide personal information and details of the estate. Capital companies usually require a copy of the will and testament of the deceased, a testamentary certificate, inventory and identification, a death certificate, a copy of the real estate holder's listing agreement or a sales contract.
A credit report will be obtained for the heirs requesting advance cash advances. If the applicant has an excellent judgment, creditor lien, child support or bankruptcy procedures, it will usually refuse early inheritance.
After the source of funds verifies all documents, priority inheritance rights are generally assigned within 3 to 5 business days. This period may vary depending on the amount of the advance payment and the policy of the source of funds.
When providing pre-inheritance rights, the source of funds bears significant risks. First, the remaining funds in the estate may not be sufficient to repay the advance payment. When this happens, the source of funds must bear the loss because the beneficiary is not responsible for repaying the advance payment. Second, the source of funds must wait until the real estate is stable before it can be distributed.
Inherited cash advances are usually between $10,000 and $100,000. In general, early inheritance cannot exceed 30% of the heir's expected allocation. When beneficiaries receive cash advances, they must assign their inheritance rights to the source of the loan in exchange for prior cash payments. In addition, the fee will be deducted from the advance payment.
Careful consideration should be given to obtaining pre-inherited funds. Although it may be desirable to obtain cash in advance rather than waiting for a resolution to be verified, it is important to understand the pros and cons of such transactions.
Last but not least, it is important to conduct due diligence when selecting funding sources. Be sure to contact the US Bureau of Business Improvement to ensure that the companies or private investors you work with are in good standing. In addition, conduct research online to check for complaints or legal issues.