dimanche 7 septembre 2014

Understanding Inheritance Funding For Beneficiaries

By Kerri Stout


When someone dies, it often leaves family members with financial difficulties. Life insurance pay outs, if the deceased even had a policy, can take some time. Unfortunately, the same is true with will and inheritances. Before inheritances can be distributed, a court must review and certify the will. Depending on the volume of cases the court has, the number of beneficiaries and any other interference, the probate process can take some time. Inheritance funding is a means of providing financial support while you await the will's release from court.

Beneficiaries, or heirs, are the people who are set to inherit anything of monetary value. An advance of this type involves monetary funds. After the loved one dies, the will can be tied up in probate for weeks or months. During this time, you may experience financial strain. Companies that offer advances on inheritances can help alleviate this strain.

These funds are commonly in the form of an advance on a portion of the total amount you are inheriting. With an advance, the company charges a fee that is based on the amount getting advanced to you. The company does not charge interest. They get repaid when the inherited funds are released by the court and you get the remaining amount.

Another type is a loan. The lender provides you with a loan amount that you are approved for based on what you are supposed to inherit. This type can work similar to an advance, but there is one big difference. Lending companies tend to charge interest and may also charge a slew of fees as well.

The first step to get the ball rolling is to complete an application with the company you have chosen to use. Although companies may differ in their exact requirements, you should be prepared to provide specific documentation and information about what you are inheriting, including how long the case has been tied up in probate court. You will most likely also need to provide contact information for the lawyer handling the case so that he or she can provide all the legal details and verify the amount you are due to inherit.

The review process can take anywhere from a few days to a couple of weeks. A decision must be made about whether the company will approve your application and how much they are willing to advance to you. It is important to understand that you may not get as much as you request. In many cases, the company wants to make sure you will have some money left when probate court is finished.

Pay attention to all the details in your contract agreement. Look closely at the repayment terms. If the company is providing you with a loan, it is likely that there will be a date set for payment in full. The company may opt not to deduct the total loan from what you inherit and you will be required to repay it out of pocket.

Getting funding on what you will be inheriting can be helpful in taking care of financial needs. It is specifically helpful if there was not a life insurance policy, or when the insurance company is taking too much time to disburse funds. Be sure to read your contract carefully and, if possible, have your lawyer look it over as well.




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