Is an Inheritance Loan Worth It?
When people create an estate plan they usually do it with one thought in mind and that is how they are able to avoid the probate process according to cape-law.com. The goal here is to ensure that the property does not get caught up in the courts and is passed immediately to beneficiaries on death.
If there is no estate plan in place though or if it is not updated for later acquired assets then these assets will mostly likely be caught up in the process. It is not a simple process though to avoid probate as there are many factors involved.
A common difficulty that occurs is with the personal representative of an estate because they should be compensated for the time and the expenses that are related to settling debts via debt review companies and maintaining the estates assets. The personal representative may already have limited time because of their own lives. The other problem that can occur is when the estates assets are locked in probate and an estate tax is due.
This is when you can consider a probate loan, which is not technically a loan, but rather a transfer of a right to your inheritance. The risk then to the purchaser is not that you will not pay them back, but rather the estate may not have the funds available to pay.
The purchaser of a right to an inheritance will be the last to be paid out of an estate, which means that the purchaser will charge a large sum to weigh against the risk. It is this fee attached to a probate loan that makes it consider as a last resort.
A probate estate that is complex can last for years because of the assets that are involved. For instance selling a family home could be difficult due to a market that has already has many homes for sale.
You need to keep in mind that you will be paying for the potential risk inherent to the purchasers of these contracts.
You will need to research companies that are reputable and have known associations with consumer review sites. You should also involve your probate attorney as early as possible so you know that you are on the right path.