When a loved one passes away, his or her assets will be passed to heirs. This is the deceased’s children. Although losing a loved one is always difficult, it can be made even more stressful by the probate process. If you are waiting on inheritance and need money now, you may consider a probate loan. Working with hard money lenders California residents may be able to borrow against their future inheritance.
What Is Probate?
Probate is a lengthy process during which the court determines the correct legal disbursement of a deceased person’s estate. The reason for probate is that everyone’s legal rights need to be considered. There can be a conflict in terms of who is inheriting what.
Additionally, creditors may have some claim to the estate. The probate process allows every claimant an opportunity to indicate a claim to assets in the estate. Once this is done, the court will determine the validity of each claim.
If the deceased’s financial matters were in good order, the probate process can be simple. In other cases, it can be a nightmarishly complex process. In either case, however, you can expect probate to last at least four months, often longer.
How Can a Loan Help?
Having to wait eight months to receive money from an estate can put a financial strain on you. Depending on the nature of the estate, you and your siblings may also owe utilities, insurance, mortgage payments and more on real property. While the estate will take care of these expenses, there isn’t always liquid cash available to do so.
A probate loan can help you to cover expenses and ease any financial difficulties during probate. Many people also use an estate loan to buyout siblings from inherited real estate. This is similar to a normal real estate loan but is borrowed against inheritance property.
Pros and Cons of Probate Loans
Probate loans can provide much-needed money to help cover various expenses. Of course, you may need to be careful if you are uncertain of the value of the inheritance you will receive. The lender will appraise the estate, but the probate process can throw some unexpected curveballs into the mix.
Typically, the cash advance from a probate loan is worthwhile if you need access to the money. It is a better option than an unsecured loan or paying for too much with credit cards. The cost of the loan is lower and it is backed by property you can be confident about receiving.
Does a probate loan sound like a good idea to you? Speak with an attorney and financial advisor to learn more and evaluate your current financial position. You will also need to notify the executor or administrator of the estate.
Working with private money lenders for real estate can help you to buy out the property in the estate. You can also use a loan to get some necessary cash to cover expenses. The more you learn about probate loans and the options available to you, the better-informed your decision will be. Get started today.