Things You Need to Know About Getting an Inheritance Advance

Are you expecting an inheritance that is being held up by probate procedures? Use an inheritance advance to access your inheritance faster.

An inheritance is a collection of items handed down in a will when a person passes away. An inheritance can include intangible assets, such as bonds or stocks. It can also include tangible assets. Sometimes such assets are physical objects, such as vehicles or collectible memorabilia. They can also consist of homes or pieces of property. When any of those items are included in a will, a probate court process is typically required before the items are released to the beneficiaries. The same is true when beneficiaries receive cash inheritances.

As with all other inheritances, the transfer of cash can take time. The probate process may take weeks or months. In some cases, it can drag on for several years. If you know you are receiving a cash inheritance, you may think you need to wait for the probate process to end before you get the money. However, there is a way to receive your cash sooner. You can apply for an inheritance advance.

What is an Inheritance Advance?

An inheritance advance is also known as a probate advance or estate advance. It occurs when a beneficiary requests a portion of money from an inheritance while the probate process is still ongoing. A beneficiary can request an inheritance advance from any company offering that service. Companies offering the service are commonly called inheritance funding companies.

The inheritance advance process is often rapid. Sometimes it takes as little as one or two days. That company provides the beneficiary with a predetermined advance amount. That amount is a percentage of the total inheritance amount. When the probate process ends and the inheritance funds are released, the amount borrowed, and a flat service fee are sent to the company. Those funds never reach the beneficiary. However, any remaining funds that still exist after the inheritance funding company is paid do go directly to the beneficiary. 

Since an inheritance funding company is repaid directly and immediately from released funds after probate, there are no risks or obligations involved for the beneficiary. He or she can use the borrowed funds without fears regarding repayment schedules. There are also no hidden fees to worry about.

What is the Difference Between an Inheritance Loan and an Inheritance Advance?

The terms “inheritance loan” and “inheritance advance” are often used interchangeably, even by certain inheritance funding companies. However, there are important differences between the two. If you are a beneficiary, knowing those differences is vital. Signing up for the wrong type of service may create future problems for you.

An inheritance loan is like a standard loan in some ways. For example, both require payment of interest. One key difference is that a standard loan charges a certain interest rate. The speed at which the loan is paid off dictates the total interest amount paid. Therefore, paying the loan off early may result in savings on interest payments. When an inheritance loan is provided, the entire inheritance is often given to the lender when probate ends. That is considered payment for the loan and interest. 

Another difference is a standard loan has a set loan term, which is how long the borrower must repay it. In the case of an inheritance loan, neither party knows how long the probate process is going to last. Therefore, there is no set loan term. Since no set term exists, no specific interest rate is calculable up front. That is why repayment is handled differently compared to repayment of a standard loan.

Why Might You Need or Want an Inheritance Advance?

The purpose of getting an inheritance advance is to access a portion of your inheritance early. It helps you avoid waiting for the potentially lengthy probate process to end before you can use some of the cash. There are no restrictions on how you use the funds received through an inheritance advance. Possible time-sensitive uses for the immediate cash you can receive before probate ends include:

  • Repaying Personal Loans

  • Paying Various Bills That Are Due

  • Making Repairs to Your Property

  • Purchasing a New Vehicle

  • Starting a New Business

What Are Some Companies That Provide Inheritance Advances?

If you want an inheritance advance, it is important to get one from a reputable company. Such services are not typically offered by banks and credit unions. You must seek out dedicated inheritance funding companies. When searching for companies, understand many of them have similar names and offer similar and somewhat confusing services. You must investigate them in detail to determine the subtle differences between them and select the best one for you. Here are some options:

  • Inheritance Loans USA is based in New Jersey. It has a somewhat misleading name. It does not offer inheritance loans. Instead, it is one of the top U.S. companies offering inheritance advances. Those advances function like purchases of portions of inheritances. They do not require repayment from clients directly.

  • Inheritance Funding Company (IFC) is a California-based company offering inheritance advances. The company offers free assessment consultations to help clients determine the sizes of the advances for which they qualify.

  • Inheritance Advanced is based in Florida. It offers a simple three-step inheritance advance process. Applicants must undergo a consultation, followed by a document review. Then money is released to them. Money is sometimes available within 24 hours.

  • Probate Advance is a New York-based inheritance funding company. It offers inheritance advances typically within a few days of application. A simple online form is provided to allow applicants to apply easily from any locations with computer access. 

  • Advance Inheritance was founded in 2005 in California. To apply for inheritance advances through the company, applicants must submit basic information online, including the states in which their probate cases are pending. Funds are usually released to qualifying applicants within a few days. Sometimes they are available 24 hours after application.

How Do You Choose Between an Inheritance Advance and an Inheritance Loan?

The choice between an inheritance advance and an inheritance loan is a simple one. An inheritance advance has many more advantages. You do not need to pay interest or make any restitution on your own when you receive an advance. There are also no strict credit score requirements. An inheritance advance also protects you in the event funds are not available to repay the lending company when probate finishes. In such an instance, the company takes the loss. Therefore, it is likely an inheritance advance is your best option, if you need inherited funds fast.