Heir advance is a term used to describe a cash advance using inheritance assets as collateral. The primary difference between cash advances and an heir advance is that the latter is not a loan. Instead, heir advances are repaid to the funding source when the estate settles out of probate.
Probate is a legal process used to validate decedents Last Will and Testament. During the process, all assets owned by decedents must be inventoried and a value established. An estate administrator is appointed to oversee the estate and perform certain duties. In cases where heirs elect to obtain a cash advance, the estate administrator must validate the amount of inheritance the heir is entitled to.
In order to obtain an heir advance, beneficiaries must locate a funding source. Numerous companies exist which offer inheritance cash advances. Heirs must assign their inheritance rights to the funding source. Therefore, caution should be used when retaining the services of these companies.
Heir advances are generally reserved for individuals entitled to inheritance proceeds valued at $15,000 or more. The process typically takes five to ten business days to complete. Heirs must provide personal information along with detailed information about the probate estate.
Although the policies of funding sources will vary, most require a copy of the Will and death certificate, along with contact information for the estate administrator and probate attorney. Other documents which may be required include an inventory and appraisement statement and petition for probate. If real estate is used as collateral, a listing agreement or sales contract must be submitted to the funding source.
The majority of heir advance funding sources require a current credit report for the individual seeking the advance. This is necessary to determine if the applicant has any liens, judgments, bankruptcy proceedings or outstanding child support obligations which could interfere with repayment to the lender.
Once information is verified, the heir signs over their rights to inheritance in exchange for the lump sum cash payment. Funding sources charge a fee for the advance which can range from 10- to 40-percent. This fee is deducted from the advance. The balance of the advance is repaid to the funding source once the estate settles out of probate.
A lesser known option for obtaining an heir advance is through a private investor such as Simon Volkov. Private investors utilize the same techniques as funding sources that specialize in cash for inheritance lending. However, most private investors charge lower fees and offer cash advances to heirs entitled to smaller inheritances.
If you are in need of cash for inheritance, contact Simon Volkov today. Simon offers complimentary consultations to help beneficiaries determine if obtaining an heir advance is in their best interest or if other options might yield better results. Simon can be reached by email or phone and information is listed on the "Contact" page.
Published on January 07, 2009 at 03:07 PM