mercredi 10 septembre 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.

These funds can be in the form of a reassignment or as a loan. Advances are reassignments. On the other hand, a loan can work similar to an advance in terms of payment to you and in repayment. The difference is that interest is charged on the amount that is advanced to you. If an interest rate is charged, the company may or may not charge a processing fee.

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.

You should also be aware of the terms of your agreement. Some companies have a deadline on repayment. In these cases, usually with loans, you are required to pay the money back by a certain date. If the will is still going through probate, you may have to pay out of pocket, unless the loan is set up to be taken from the inherited funds.

Discuss your options with the probate lawyer that is handling your case. Allow him or her to look over your contract agreement, before you sign it. This type of funding can be helpful in your time of need, but if it is not handled by a reputable company you can wind up in near financial ruins.

About the Author:

Aucun commentaire:

Enregistrer un commentaire