Five Facts You Need to Know About Getting a Probate Loan
On occasion, your inheritance tax will be due before you actually receive your inheritance. So, how can you possibly pay for something you do no have yet? This is where probate loans come into play.
1. What is a probate loan?
Probate actually means “prove the will,” and a probate loan involves heirs to that will. A probate loan provides cash to heirs of probate estates immediately, as well as to the heirs of the trust awaiting their money. This money comes from the will of the deceased owner.
2. What happens during the process?
It is up to executors of the will to distribute the assets. The probate process varies in length, often because executors must also take the rights of the creditors into account during it as well. A probate loan can end up being a good inheritance loan once the will is resolved.
3. When do the heirs get paid?
First, the heirs to a probate loan must provide specific information about their impending inheritance. They will tell this information to the funding source. Before a probate loan can become probate cash, this information must first be disclosed. Then, the payment can be issued.
4. What about a contested estate?
Probate loans are likely your best option in the case of a contested estate. If one or more heirs does contest the estate, the process could end up being suspended for any number of months. The loan will best be suited to paying the inheritance tax, which you may be prompted to pay even before receiving the proper inheritance.
5. What about real estate?
Executors of probate will often get an advance on their inheritance. It is a good idea to put this money into building up and repairing the property you may have inherited. You will want to maximize the sale value of this home or property when selling any inherited real estate. More like this.