The Basics of Probate Loans

December 29, 2011 by  Filed under: Loans 

Everyone wants to leave a mark in this world so people remember them when they die. It may be the values they have instilled in their children, happiness they have brought to other peoples’ lives, and material possessions that secures their loved ones long after they are gone.

The legal process that takes place after a person dies always involves how their assets will be distributed. When someone dies, their estate will be opened to settle any debts that were incurred while they were still alive. This needs to be established before an inheritance can be given to an heir. This process takes a long time, spanning from months and in some cases, years. For the meantime, the inheritance is left untouched until everything is settled.

This is where probate loans enter into the picture. Probate loans are useful when the heir has monetary needs that need to be dealt with at the shortest time possible. It is the money basically credited against the inheritance you expect. Take note that the money given to an heir will depend on how much the estate can pay.

Probate Advance: Helping heirs move on

The following are frequently asked questions on how a probate advance works:

1. What are the requirements needed for probate loan eligibility?

Requirements may vary depending on the lender but there are three requirements that apply for all cases. The first one would have to be the existence of an estate. The second requirement requires authenticity regarding the identity of the heir. The “heir” must prove that he or she must be the beneficiary of the said estate. The last requirement is that the estate must be in probate.

When we say probate, the estate must be in a process where the goods and property of the deceased will be distributed. The probate has several phases. The first one involves accounting of all the property. After this, the creditors must be informed about the cause, date and time frame of the death of the deceased. Subsequently, the estate reconciles these debts out of assets. Finally, the rest of the assets will be distributed according to the will of the deceased. If a will does not exist, the state is the authoritative body that will decide how the property will be distributed.

Once these requirements are met and you are eligible, lenders usually conduct a simple background check. They’ll look into your credit history and meet with the lawyer in charge of the estate. They will assess all values and file the proper documents in court.

2. Will the inheritance get back its money?

The inheritance will be paid back. That is certain. This, however, will not be received by the loan beneficiary. The probate advance is compensated by the estate.

3. Exactly how long will it take and how much can be advanced?

This depends entirely on how much the estate is. Loan applicants can borrow between 30% and 50% usually. As for the amounts, lenders set their minimum amount to $10,000. Filing of important documents, assessment of values, and the other processes take around 5 to 7 business days.

Isabella Manzanares is an heir who acquired a probate loan and is knowledgeable with probate advance.

Article Source:
http://EzineArticles.com/?expert=Isabella_Manzanares

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