When you need inheritance money, but the estate is not finished with probate, you may be tempted to turn to an inheritance funding company. Inheritance funding companies are a great way to help you cover expenses while waiting for an estate to settle. However, they are not a good idea for all people. Before you go through with any type of inheritance funding, we suggest you ask your inheritance funding company the following questions.
Do you offer inheritance loans or inheritance advances?
There is a significant difference between the two types of probate funding. For inheritance loans, you are responsible for making payments on the loan until the estate is probated. If you get no money from the estate, you still owe the money. You may need to show good credit and the ability to pay in order to get an inheritance loan.
A probate advance is something different. The company purchases a portion of the estate from you. that transfers the risk to the advancing company and away from the heir. The heir is not responsible for making payments while the estate is being probated. The heir does not even make payments once the estate is probated; instead, the company collects the money directly from the estate.
Will my inheritance be collateral?
The answer to that question depends on how you obtain the funding. For inheritance advances, you do not need collateral because the company is purchasing part of your inheritance. For inheritance loans, the inheritance cannot be collateral. Since you do not actually own the inheritance, it cannot secure a loan. So, you will need to be able to show an ability to repay that is not dependent on your inheritance.
If you need money now, we can help. We are an inheritance funding company, not a lender. We have you fill out a simple application and verify that you are about to receive an inheritance. Then, we arrange to purchase a portion of that inheritance from you. At that point, our business is done. You do not owe us any payments and do not need to repay the money when you get your inheritance. Instead, we collect our money directly from the estate. It is the easiest way to get an advance on your inheritance.