Probate Inheritance Estate Tax Sometimes Needs Advanced Inheritance Cash.
Probate inheritance refers to money, real estate, automobiles, recreational vehicles and personal belongings left to beneficiaries through the death of a relative. The decedent may or may not have executed a Last Will and Testament. In cases where the decedent dies without a Will (intestate), the probate court assigns an estate administrator to oversee the estate. When the decedent executes a Will, they generally name a designated estate executor to administer their estate and distribute assets.
Probate inheritance property cannot be distributed to heirs until probate is completed. Oftentimes, individuals entitled to probate inheritance have to wait months, or even years, to receive what is rightfully theirs. During probate, the estate administrator must take inventory of the decedent's assets, pay outstanding debts and file a final tax return within nine months of the decedent's death.
In most cases, the decedent's bank accounts and financial assets are frozen. In order to release funds, a probate judge must grant authorization to the administrator. If the decedent owns real estate which has a mortgage payment, the heirs may have to pay this expense out of their own pocket until the judge authorizes allocation of money from the decedent's account.
In cases where the decedent owns real estate, financial investments or a business that is losing value, a probate attorney may request the assets be sold. If beneficiaries do not agree to the sale of assets, the probate attorney can ask the court to appoint a Trustee to manage the assets during the probate process.
If all beneficiaries agree to the sale of assets, they must sign legal documents granting permission to the estate administrator. Assets can then be sold with the assistance of the Trustee or beneficiaries can locate buyers on their own.
Another option to liquidating probate inheritance property is by selling assets to a private investor or advance inheritance company. When investors or advance inheritance companies purchase probate assets, they purchase inheritance property under market value. They assume substantial risk, as they do not receive payment until the estate is settled.
One of the best ways to obtain probate inheritance property quickly is to avoid the probate process altogether. This can be accomplished by executing a Revocable Living Trust and assigning Payable-on-Death (POD) and Transfer-on-Death (TOD) beneficiaries to financial and real estate holdings.
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