Specialized companies offer inheritance advances as a form of funding that provides swift access to a part of an individual’s inheritance. However, it’s crucial to note that there are fundamental differences between inheritance advances and loans provided by inheritance lenders.
To better understand these differences, it’s essential to comprehend what an inheritance loan entails. An inheritance loan, also called an estate or probate advance loan, involves borrowing funds against one’s inheritance, using the inheritance as collateral for the loan. However, this service is not typically provided by traditional lenders.
With an inheritance loan, the lender determines the inheritance amount by evaluating the estate’s value and then grants a loan based on that amount. In exchange, the borrower grants the lender the right to use the inheritance to repay the loan and interest.
There are two significant ways in which inheritance advances vary from loans. Firstly, there’s no need to repay the advance, and secondly, there’s no interest to pay. Instead, the borrower sells a percentage of their inheritance to the advance company, and once the probate process is over, the estate pays the company directly.
Since probate can take up to 17 months in the United States, an advance offers beneficiaries an opportunity to access their inheritance as soon as their loved one’s estate is open. This can help relieve financial stress and enable individuals to focus on grieving their loss instead of struggling over funds.
If you’re interested in learning more about inheritance advances and how they can assist you during this difficult time, please visit the Inheritance Loans USA website.
