Heir advance refers to obtaining a cash advance using inheritance held in probate as collateral. Heir advance is not a loan. There is no interest applied and the advance is not repaid by the beneficiary who receives it. Instead, heir advances are reimbursed to the lending source when the probate estate is closed. Depending on the complexity of the estate, probate can take between six months and three years to settle.
Typically, funding sources provide heir advance when the beneficiary is entitled to inheritance valued at $15,000 or more. The person receiving the advance must provide personal information such as their social security number and date of birth, along with details of the probate estate
Most funding sources require a copy of the decedent's Will, death certificate, and name and address of the Estate Administrator and probate attorney handling the estate. Other required documents might include the Petition for Probate, Inventory and Appraisement statement, and listing agreement or sales contract for real estate.
In most cases, a credit report will be obtained for the beneficiary requesting an heir advance. The credit report is used to determine if the heir has outstanding judgments, child support or bankruptcy proceedings which could interfere with repayment to the lending source. If the heir has any of the above, most lending sources will not provide a cash advance.
Beneficiaries assign their inheritance rights to the funding source in exchange for the upfront cash payment. In most cases, a fee is charged and deducted from the advance.
Once documentation is verified, advance inheritance distributions generally take place within three to five business days. This timeframe may vary depending on the amount of the inheritance advance, as well as the policies and procedures of the funding source.
Companies and private investors who provide heir advances assume substantial risk. First and foremost, is the potential for insufficient funds in the estate to repay the cash advance. Secondly, they must wait until the estate settles through probate before they receive repayment.
In cases where the estate lacks sufficient funds to repay the heir advance, the beneficiary assumes no personal liability to repay the funding source as long as they provided truthful information on their application and honor the assignment agreement. However, if the heir provided false information, the funding source can proceed with legal action against the beneficiary to recoup the amount provided in the heir advance.
A lesser known way to obtain an heir advance is through a private investor or real estate investment group. If you are in need of an inheritance cash advance, Simon Volkov might be able to assist you in obtaining funding. By providing information about your inheritance through our secure Cash for Inheritance form, Simon can review your situation and determine the best course of action for your circumstances