An Estate Beneficiary's Guide to Probate Loans
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Posted On :
Nov-28-2011
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Article Word Count :
504
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Losing a loved one is difficult for anyone. The loss is even more complicated if you are still relying on the one that died. If a survivor is heir to an estate, however, probate loans might be a solution to their problems.
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Before talking about what a probate loan is, it's important to first understand the process of probate. Probate is a legal procedure in which the ownership of assets of a deceased person is transferred to his heirs or beneficiaries. Due to how it is presented in the media, many people think that the very idea of a last will and testament or estate is easy. They are mistaken. Even though it is fairly easy to understand, you will find intricacies people need to know about.
The property of the deceased person is called an "estate." An estate may include things like personal belongings, real estate, bank accounts, and other properties. If the person who died came up with a will before death, this individual is called the "testator." The estate of a person who dies with a will becomes a "testate estate." In instances where a will is prepared by the deceased, the estate is called an "in testate estate." If a will exists, it will more than likely identify a single person who carries out the bequests of the deceased. This individual is known as the "executor."
In short, the probate process requires the verification of assets. The court certifies whether the deceased has any debt or other issue that needs addressing.
Once an estate enters into probate, beneficiaries could take one of three steps. First, they can wait out the whole probate process. The duration of the process differs according to the size of the estate. In most cases, the process takes at least half a year. If an heir wants to claim their inheritance immediately, they can, but this process will most likely involve large fees and high taxes. The third and most suitable option is to get a probate advance.
What is a probate advance/loan?
A probate loan is more like a cash advance than a loan. A beneficiary won't be personally responsible for repaying what is advanced. The pay return process will be left up to the estate. Basically, instead of waiting, heirs advance what they stand to inherit and transfer the waiting process to their funding source.
What are the eligibility prerequisites?
Requirements vary according to lenders. However, the basic requirements are the following: First, there must be an estate. Second, the applicant will have to be a beneficiary or heir of the estate. Lenders require people who seek loans to present supporting documents to prove that they're heir to or will benefit from the estate. The last basic requirement would be that the estate has to be in probate.
Although it may seem to be an ideal option, there are things beneficiaries need to remember. If there are other heirs included, it would be wise to keep everyone informed. If an estate is not that big, meet with a probate attorney. In some instances, beneficiaries of a smaller estate are better off waiting out the process as opposed to seeking a probate advance.
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Article Source :
http://www.articleseen.com/Article_An Estate Beneficiary's Guide to Probate Loans_111034.aspx
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Author Resource :
Isabella Manzanares is a probate lawyer who has helped people get probate loan. For more information on how these could assist you, read up about probate advance.
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Keywords :
probate loan, probate advance,
Category :
Finance
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Finance
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