What Probate Loans Can Be Used For
When someone dies, their estate is usually divided up among heirs. Many people make arrangements for this before their death with a will that identifies heirs and directs the disbursement of the estate. As long as there is a will and there are no disputes, this process can be quick and straightforward. If any of the heirs dispute the will or there are claims from creditors, however, a probate court will be required to settle the claims and oversee the estate settlement. If an estate has to go through the probate process, it could take months or years before it’s settled.
If you are the heir to an estate or trust in probate, you could be waiting a while to access your portion of the inheritance. For some in this situation, they might have bills or other needs and require the money sooner. An advance or loan on the inheritance could be a solution for people in this situation. Since the probate process can take months or years to complete, a probate loan or inheritance loan could help you get your money faster. A probate loan uses your inheritance as collateral for the loan and provides the money upfront while you wait for estate funds. Let’s take a look at probate loans and what you can use them for.
What is a probate loan?
Inheritance funding, also known as a probate loan, is similar to a personal loan and is a short-term form of financing. This type of funding is for borrowers who want to access the value of their inherited funds or assets while waiting for the probate process. Inheritance loans, inheritance advances, estate loans, or probate advances are all terms that refer to inheritance funding. While these loan options all require a guarantee of inheritance funds, the terms and options can vary. The two basic types of inheritance funding are a cash advance on your inheritance and a short-term loan using the inheritance as collateral.
Known as probate advances, this type of inheritance financing provides you with immediate funding. In exchange for a cash amount that is usually less than your full inheritance, you’ll transfer the right to your inheritance to the lender. Since you’ll be assigning your claim to your portion of the inheritance to the lender, you won’t have to make any monthly payments on your advance. This is the fastest way to receive your funds, but you’ll get less than the full value of your inheritance.
Inheritance loans, probate loans, or estate loans will give you the option to borrow against the inheritance that is stuck in probate. Like a personal loan, you’ll fill out an application, agree to terms, receive your funds and make monthly payments with interest and fees. Your estate inheritance is considered collateral, and you’ll use it to pay off the loan when you receive it. You’ll want to do research and compare rates with either option to ensure that you are getting the best option for your situation.
What can you use a probate loan for?
Like any other cash advance or personal loan, probate loan funds can be used for many purposes. A majority of people might need access to their inheritance sooner due to bills or unexpected expenses. Property taxes, income tax, medical bills, or car repairs are expenses that could all be covered with your inheritance loan funds. If you have large bills and your inheritance funds are being held up by a probate case, a loan could be just what you need.
If you’re interested in getting work done to your home, a probate loan could help you with repairs or upgrades. Instead of waiting for your inheritance to clear, a probate lender could provide funds for your home projects. Borrowers frequently rely on probate loans to complete work to their home. If you require a roof repair, inheritance financing could allow you to contact Alexandria roofing contractors to get a new roof or roof repairs done. Depending on your inheritance and loan size, you might also consider adding on a new deck or covered porch. With inheritance financing, you can make repairs or do several home improvement projects.
A cash advance or loan for your inheritance could provide you with several options. If you don’t have large bills or need to make home repairs, you could use the funds to get out of debt or take a vacation. You could also consider making a large purchase like a new car or boat. Additionally, you might consider refreshing your landscaping in and around your yard. You can have outdoor plants delivered to your door and create a glamorous outdoor space. Once you are approved for a probate loan, you can use the money for whatever you might need or want.
While you’re waiting for inheritance funds to get out of probate, you might consider a probate loan. Instead of waiting for the estate executor and the probate judge to work through the estate settlement, you could have the money now. You will want to do some research to ensure that you’re getting the best product for your situation. Once you get the funds, however, you can use them for just about anything.