Inheritance advances are a type of funding provided by specialized companies, designed to offer quick access to a portion of an individual’s inheritance. While inheritance lenders may also provide similar services, there are fundamental differences between these two types of offerings.
To fully appreciate the dissimilarities between inheritance advances and loans, it’s essential to understand what an inheritance loan entails. An inheritance loan, also referred to as an estate loan or probate advance loan, involves borrowing funds against one’s inheritance, with the inheritance serving as collateral for the loan. However, traditional lenders rarely provide this service.
With an inheritance loan, the lender assesses the estate’s value, determines the inheritance amount, and then provides a loan based on that amount. In return, the borrower grants the lender the right to use the inheritance to repay the loan, plus interest.
There are two primary reasons why inheritance advances differ from loans. Firstly, there is no interest to repay, and secondly, there is no obligation to repay the advance. Instead, the borrower sells a portion of their inheritance to the advance company, and once the probate process concludes, the estate pays the company directly.
As probate can take up to 17 months in the United States, an advance provides beneficiaries with an opportunity to access their inheritance as soon as their loved one’s estate opens up. This can alleviate financial stress and enable individuals to focus on mourning their loss, rather than fighting over funds.
If you are interested in learning more about inheritance advances and how they can help you during this difficult time, visit Inheritance Loans USA’s website.
