Reasons to Use an Inheritance Loan
The estate that has been left could be going through probate or through a trust administration process. When this is happening, the heirs of the estate are not able to directly access the asset, which they are entitled to. An heir can then utilize an inheritance loan for a few notable reasons.
Settling Estate Obligations
It can take months or even years for the probate process to ne completed. In this time you may find that there are a number of estate obligations that have to be settled quickly. This may include funeral costs, legal fees, paying debts or maintain or repairing properties.
If the heirs do not have the money to settle these, then they are able to take a short-term inheritance loan so that they have the money to pay.
Get An Inheritance Advance
Heirs may find that they have financial needs like paying off high interest debt, medical bills, funding a down payment or to take advantage of an investment opportunity.
Heirs are able to get access to assets that they are entitled to by taking an inheritance loan.
Splitting Interest in Real Estate Between Heirs
There could be a time where one heir would like to keep the ownership of a property in the estate and another heir would prefer to have the cash.
If this happens the heir that would like to keep the property can take an inheritance loan against the property and the proceeds of the loan can be used to pay off the other heirs for their interest in the property.
You are not able to get an inheritance loan from a bank or other traditional lender. Instead a borrower will need to get an inheritance loan from hard money lenders. They provide short-term loans to borrowers that have equity in properties.