Inheritance Loans – What They Are and How They Work2 min read
What is an inheritance loan? Is it really a loan?
No, it is not really a loan. A loan is something that you usually will be personally responsible for paying back. An inheritance loan is really a cash advance. The difference is that the cash advance will only be paid back from the estate. If the estate runs out of money then you (if you were the one who got the “loan”) will not have to pay it back. There are lenders who provide loans for the beneficiaries of an estate which is held in probate. The beneficiary will have to provide the lender with both personal information and with the details of the estate. Once the advance is granted there will be no interest accruing on the loan, and no note due – the loan is automatically repaid through the estate when probate settles. In order to apply for an inheritance loan the beneficiary’s credit report will be obtained. A credit history is often looked at to be sure that the person getting the money is not in bankruptcy already. Other than bankruptcy, personal credit problems do not really matter.
How much is the average inheritance cash advance?
Cash advances can range from $10,000 to $100,000. In general, advance inheritance payments will be up to 30% of the anticipated distribution of the beneficiary. The loans are not greater than this due to the risk assumed by the lender. If insufficient funds remain in the estate to pay back the loan after the distribution of the estate, the lender must take the loss-the heir is not responsible. This is why the investor can only advance a percentage of the expected inheritance.
How long does it take to get a cash advance on my inheritance from a lender?
Advance inheritance cash distributions inheritance loans usually occur within 5 to 7 business days after the documents provided by the beneficiary have been verified by the lender. This time estimate may vary depending on the lender and on the amount requested by the beneficiary. It really does just boil down to having all the correct documents. If you have them sooner then the process can be very quick indeed.