Probate Loan: What Is It And How Can You Use It?
The death of a loved one is never easy news to receive. Between leaving time for grief and managing the logistics of a funeral and estate management, there is little relief to be found except in the congregation of family.
However, everything around us goes on, and one of the key aspects to take care of after someone’s death lies in the management of the estate – and something called probate.
In the unfortunate event of a death in the family, there comes the often-difficult task of handling the deceased’s estate. This will invariably fall to the deceased’s next-of-kin, in the form of a close relative or spouse. However, before the estate – and the money, assets and possessions included within it – can be managed by another person, they will need to apply for probate.
Probate, in essence, describes the legal right to administer an estate on behalf of the deceased. It is an application that a surviving family member or trusted associate must fill out, in order to legally gain access to bank accounts, title deeds and any investments made. This remains the case for those named executors in a will – though if there is no will, the closest living relative is eligible to apply.
What Is A Probate Loan?
Probate can be a slow-moving process, and even after the successful granting of probate the management of the estate and execution of the will can take some time to complete. In the interim, a number of considerable, personal or emergency costs can abound for the executor and for any potential beneficiaries of the deceased’s estate.
Since the legal distribution of inheritance money can take some time to clear, there are options available to free up that money earlier – chief of which is the probate loan. Beneficiaries of an estate can apply for a probate loan to receive their inheritance more quickly, in the form of an advance to be repaid directly by the estate.
Key Applications Of A Probate Loan
There are numerous reasons for which an executor or beneficiary may want to release their inheritance money before probate is granted and execution underway, with probate loans offering the means to quickly solve key expenditures or issues.
A common use for inheritance money is the paying-off of a mortgage or the purchasing of property; indeed, inheritance funds form the basis for many first-time buyers’ deposit pools. With the property market cooling after a period of rampant growth and budding concern for future market uncertainty, it is understandable that beneficiaries may want to expedite access to funds for property purposes.
Another key application for probate loans is the elimination of debt. It may be that existing debts are racking up considerable costs in terms of interest; with the knowledge that ample inheritance money is on the way, a probate loan can consolidate that debt and eliminate any repayment burdens altogether.