When a person dies, their estate is not distributed among their heirs immediately. Instead, the probate process begins. This generally takes about a year and a half before inheritances are distributed. Once these people receive this money, they will need to pay estate taxes and are often not left in a great financial situation. However, if you find yourself in this situation and need money, you could qualify for an inheritance advance. Here is how you would get one of these loans.
Speak to Your Lawyer
Some states prevent inheritance advances, so you should talk with your lawyer before proceeding. Your best option for getting an accurate answer is to ask the estate’s administrator.
Make Sure You Receive Enough for an Advance
The qualifying amount depends on which inheritance advance company you go with, so you must ensure you will receive enough before starting the process. Often, these companies require you to inherit more than $15,000, but it could be more or less, depending on where you are and which company you choose. A minimum amount is required to ensure the loan is worth the company’s time.
Consult With a Financial Professional
Before moving any further, you should talk with a financial professional about any costs or taxes associated with an advance. Any time you receive an advance, you will end up with less money than if you waited for your inheritance. A financial professional can tell you approximately how much money you will lose so you can determine if the advance is worth it or not.
Alert the Estate Administrator
If you decide an inheritance is right for you, the first thing you need to do is call the estate administrator and inform them of your decision as soon as possible. This will give them the time necessary to arrange for your inheritance to be sent to the lender rather than you.
Gather Necessary Documents
Any lender you choose will need to see extensive documentation about your inheritance. The exact documents required can vary between lenders, although several pieces serve as a good starting point. This includes copies of the deceased death certificate, will, court letters, estate administrator appointment, certification of your expected inheritance, and your identification.
Contact an Inheritance Lender
The next step is to find a lender in your area. The easiest way to start this is by doing a quick internet search for inheritance advance lenders in your state. You are going to come up with a lot of results at first. Weed through these to find the right company by looking at their interest rates, fees, and other facts.
Ensure You Get an Advance, Not a Loan
When you get an advance, you are getting a lump sum right now instead of a loan. This transfers any risks associated with not receiving your inheritance to your lender instead of you. This also gives the company the ability to charge you for your advance, which means you get less money, but you don’t pay it back. A loan backed by your inheritance does not transfer this risk, so you could easily end up in debt if you don’t get as much as expected.
Fill Out the Agreement and Submit
To finalize your advance, you will need to fill out the agreement transferring your inheritance, so it is sent to the lender. Read the document to see if it specifies the exact amount you will get and any fees you must pay. Ensure these values are included and that they are the agreed-upon amounts. If you have any questions, be sure to ask the lender before signing and submitting the agreement.
When you need your inheritance quickly to improve your financial situation, consider an inheritance advance. This will give you access to your money quicker and help you through the tough time after losing a loved one.