Probate money refers to cash, coins, gold or currency gifted to beneficiaries through a decedent's last will and testament. Unless protected through a trust, inheritance money must be processed through probate before distribution can occur. Unfortunately, this process can extend for months or years.
Probate money can also refer to cash obtained through the sale of probated assets. Many aspects are involved with selling inheritance assets held in probate. Much depends on the type of asset and its value. Selling a business or piece of real estate requires considerably more effort than selling a valuable stamp or coin collection.
Nearly anything held in probate can be sold. Some states require authorization from the court. Other states implement court confirmation and require all transactions to be authorized by the estate administrator. If multiple heirs are entitled to real estate they must all be in agreement to sell the property.
If you are attempting to exchange probated assets for a lump sum of cash, the first step is determining the probate laws associated with the estate. Laws of probate vary by state. If a probate attorney is administering the estate, they can easily advise of what can or cannot be sold. Otherwise, consult with the probate personal representative or obtain independent legal advice.
The term 'sold' is used loosely. Inheritance assets aren't actually sold in the normal sense. Instead, probate investors provide beneficiaries with cash for inheritance in exchange for transfer of assignment rights.
Individuals who provide money for inheritance are referred to as funding sources. Probate liquidators assume risk when providing probate money advances. The primary risk is the estate will be financially incapable of repaying the advance when probate settles. The second risk is investors must wait until probate settlement for restitution.
Once a probate advance is provided, heirs are not responsible for repayment to the funding source. Instead, the estate repays the investor at probate settlement. If the estate is unable to repay the funding source, there is no legal recourse for the investor. The exception to this rule is if it is later discovered and proven the recipient provided erroneous information regarding inheritance property.
Prior to the economic recession, heirs could obtain probate money through banks, cash advance companies and investors. Today, few banks provide probate cash. While there are numerous probate liquidation companies, heirs must engage in due diligence to ensure they are working with a reputable firm.
A lesser known source for obtaining inheritance cash advances is through private investors. The Internet is a good resource for locating local probate investors. Mortgage lenders, banks, credit unions and real estate or probate attorneys can provide referrals.
Ask investors for a list of referrals and contact each to determine their experience. Check with the Better Business Bureau to determine if any complaints have been filed. Visit government websites to determine if the investor holds proper business licenses.
Obtaining probate money through a funding source typically requires three to four weeks. The funding source will run a credit and background check to determine if liens or judgments are filed against the beneficiary. Estate information must be verified through probate courts.
Upon approval, inheritance advances are distributed within 10 to 15 business days. Funding source fees for inheritance loans can range between 25- and 40-percent of the cash advance. For example, if assets are valued at $20,000, the funding source would retain between $5,000 and $8,000.
As a private investor I provide probate money advances to qualified heirs. If you wish to sell inheritance assets held in probate download the Probate Inheritance Form and follow the directions. Upon receipt of your documents, I will contact you to discuss available options.
Published on November 16, 2009 at 01:27 AM
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