Inheritance cash refers to a cash advance using inheritance held in probate as collateral. When estate assets are held in probate it can take months or years before distribution takes place. Instead of waiting for probate distribution, heirs can sell their pending inheritance in exchange for a lump sum cash payment.
Inheritance cash advances can be obtained through private investors, lenders or other funding sources. Beneficiaries can use the proceeds to pay off credit cards and other outstanding debts; invest in real estate, stocks, bonds, mutual funds and other investment portfolio opportunities; or fund a vacation. Unless the beneficiary has outstanding tax liens, creditor liens or child support, they are free to do whatever they desire with their inheritance cash advance
Typically, traditional lending institutions such as banks do not provide inheritance cash advances because they are too risky. Organizations that provide cash for inheritance must wait until probate settles. In some instances, there is not enough money left in the estate to repay the cash advance.
In most cases, funding sources charge a fee when providing cash for inheritance advances. This fee is deducted from the advance. Fees range from 10- to 40-percent of the anticipated inheritance. Fees are based on the policies of the funding source, type of inheritance (cash, real estate, artwork, jewelry), and anticipated duration of probate.
Beneficiaries must sign their inheritance rights over to the funding source in exchange for the money. As a general rule, lenders only provide advances to heirs entitled to $15,000 or more. The recipient of funds must provide substantial proof of entitlement to inheritance property. The majority of lending sources will run a credit report to ensure no outstanding liens, collections or other legal issues exist.
The process for obtaining an inheritance cash advance can take three days to three weeks. Some companies will process your advance in as few as 72 hours and will not require a credit report. However, these companies oftentimes charge upwards of 50-percent in fees.
Use considerable caution when seeking out inheritance cash advance funding sources. Unfortunately, there are many scammers preying on desperate people. Engage in due diligence and make certain the funding source is credible and trustworthy. After all, you are signing away the rights to your inheritance.
Published on November 11, 2008 at 09:01 PM | Comments: 1
| | Printer friendly