Is An Inheritance Advance The Right Way To Manage Your New Asset?
Inheritance advance payments can give you access to funds you have inherited, without you needing to wait for the will to go through probate. Although this is an advance of money in a similar way to a loan, it has several significant differences. The lender of the money is in a far more secure position than usual, as they are guaranteed to receive the money they are owed from the proceeds of the will when they finally come. Because of this, they can offer far better terms, and they can also take on borrowers they would not normally consider.
If you are someone who would normally be turned down for loans because of the credit scoring system, you should find that the inheritance cash advance will still be possible. It does not matter to the lender whether or not you are in regular employment, or whether you have other loans which you may not have been able to pay back. As long as the lender can guarantee that the inheritance is genuine, and tat they will receive their money when it goes through probate, they will be happy to make the loan.
There are also differences in the way lenders charge and make a profit from these loans. Normally, you are faced with a situation where interest is payable over the entire length of the loan. This means that the longer the loan takes to be repaid, the more money the borrower ends up paying back in interest. In the case of an inheritance advance, this would be grossly unfair. The borrower has no control over the time a will takes to pass through probate. For this reason, the vast majority of inheritance loans are charged at a flat fee.
The risk to the insurance company comes from the possibility that a full inheritance may not be granted, for whatever reason. Wills can be challenged by parties who believe that they had an automatic entitlement to receive a bequest, and there is always the possibility of an irregularity with the paperwork. The loan company will be the one which has to absorb any loss, so this needs to be factored in to their charges. Fee structures can vary wildly, so please make sure that you do enough research before you look to sign any contracts.
So, the question remains. Is an inheritance cash advance the right way to go? In the end, it depends on individual circumstances. In many cases, it will be the most sensible option so long as you shop around and make sure that you get a competitive rate. If you do, you will be able to take advantage of the money now, and lock in prices which may well be lower than those you will have to pay if you wait for the money to come through. If you are likely to have to wait a long time, you should definitely consider an inheritance advance.
|Inheritance: To spend or not to spend - Chicago Tribune|
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