Probate cash refers to money obtained from a funding source using probate assets as collateral. Probate assets include financial and real estate holdings left to beneficiaries through a Last Will and Testament. In order to obtain cash in exchange for probate inheritance, a series of events must occur.
Probate cash is available through either inheritance cash funding companies or private investors, such as Simon Volkov. These entities or individuals are referred to as the Funding Source. When a funding source provides probate cash, they assume a considerable amount of risk.
To minimize their risk, funding sources generally verify estate and beneficiary information. Estate information is provided through the decedent's Will or trust. When an estate is placed in probate, a case number is assigned. Generally, a probate or estate planning lawyer help oversee the estate.
Probate is used in all 50 states to validate the decedent's Will and ensure it adheres to probate laws. If everything is in order, probate usually takes about eight months to settle. However, if any heirs or outsiders feel slighted they can contest the Will. Contested wills can cause probate to drag on for years and financially drain the estate.
It is important to note all heirs must agree to allow beneficiaries to obtain inheritance cash advances. For example, if four people are entitled to inheritance and one person wants to obtain a cash advance, the other three must agree.
Once a funding source has been located, the beneficiary requesting probate cash will need to provide information about the estate. Funding sources generally require a copy of the death certificate and Will. If other heirs are entitled to inheritance, the funding source will require written approval from each.
Funding sources usually require a current credit report on the applicant. This is conducted to ensure no liens or judgments exist which could interfere with repayment.
The applicant must assign their inheritance rights to the funding source in exchange for probate cash. Funding sources charge a fee which can range from 10- to 40-percent, or more. This fee is deducted from the cash advance. Once probate settles, the estate repays the funding source.
Probate cash can be a good option for beneficiaries who are in need of cash. However, it can be costly. Before making a final decision, explore other options such as obtaining a secured loan or borrowing from friends or relatives.
Published on February 08, 2009 at 02:19 AM