Probate is the process by which the court oversees a persons debt settlement upon their death, and inherited real estate and property is passed into the hands of the deceased owners heir.
Heirs can then use inherited property to receive probate cash. Many banks and credit unions will provide an inheritance advance, providing the heir advance probate cash when heirs are entitled to items that are titled, such as homes and cars. This can be a lengthy and slightly complicated process. If the state the heir resides in allows inheritance loans via probate cash, then the heir must first locate a funding source.
Since funding sources are the last to be paid during an inheritance process, they take on a large risk when using inheritance assets as collateral for probate cash. Probate proceedings can take months, leaving the funding source unpaid for large periods of time, and if an heir contests the deceaseds will, there is a chance that the estate may go bankrupt paying for the defense costs, and the funding source may never be repaid. In this case, the funding source has no legal recourse. It is for these reasons that heirs are required to undergo investigation before receiving probate cash. A copy of the last will and testament, as well as the death certificate, must be presented to the funding source. The heir must also go through background checks and credit checks to look for tax liens, bankruptcy petitions, foreclosure, or any other financial situation that could interfere with payment of a probate loan. Next, the property must be appraised. Funding sources generally charge a fee of between ten and forty percent of the current market value of the property.
If multiple heirs are being left the property, the process gets a bit more tricky. All other heirs to the property must allow those wishing to use the inheritance as collateral to receive probate cash to do so. Helpful sites.