Managing probate estates is not easy. When you are grieving after losing a loved one, the last thing you want to deal with is a complicated legal and financial process. Sadly, this is often what happens to many families as they go through the probate process. Understanding the probate process can help you keep your options open, keep you informed and prevent you from being surprised by last-minute snafus.
Probate loans in California can help, bringing many benefits that range from competitive rates and terms and interest-only payments.
What is Probate?
First off, what is probate? Probate is the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries, according to the American Bar Association. If you have a will, probate will go through the process of proving the legality and validity of said will, as well as the execution of your instructions and the payment of taxes.
If you do not have a will, the probate process kicks everything up a notch, and a judge must tackle all the work the will was supposed to do in the first place by appointing a personal representative, says Dave Ramsey. Then, the court gets involved in the process of valuing the estate, finding creditors and beneficiaries, and determining the best and fairest way of distributing the property to heirs.
Probate loans, also called estate loans, solve many sticky estate issues, offering flexibility for the administrator to carry out the deceased person’s wishes, assist beneficiaries in obtaining their share of the inheritance without the need to sell off valuable family property, and allow heirs to optimize the value of their inheritance.
Here are four things you should know about probate loans.
Consider a Probate Loan if You Recently Inherited Real Estate
Dealing with the loss of a loved one is hard enough but if you were financially dependent on them, the problems can be compounded. It’s not uncommon for probate to drag on for years after the death, a long-drawn-out process that doesn’t have to be that way with a little forethought. If you are inheriting real estate, you can apply for a short-term form of financing that capitalizes on your real estate value.
Without Proper Protection, You May Have to Sell Valuable Property
Many probate estates are limited in liquidity, meaning that they likely consist mostly of non-cash assets. If there’s not enough liquidity to probate the estate, you may have to sell off valuable estate assets in the interim to make sure the probate process gets handled correctly and fairly. This means heirs can’t inherit property that could hold significant monetary and sentimental value. On top of that, selling assets rather than allowing heirs to inherit them can lead to the squandering of valuable income tax and property tax benefits.
Probate Loans Can Ensure a Seamless Process
Estates need sufficient liquidity to ensure the probate estate winds through the court system unhindered, and in the proper way. Without a court order, no disbursement of funds or assets can be made. An administrator, therefore, needs to have access to that money so that monthly bills can get paid, the funeral and medical expenses for the deceased can be taken care of, and probate court proceedings can be funded. This can include fees for anything from filing to publication.
Contact HCS Equity
To learn more about probate loans in California and how they can benefit you, please contact us today to schedule your free consultation or call 877-427-9820. Our probate loans offer many benefits, backed by competitive rates and terms, no personal guarantees required, no prepay penalties, and no minimum months of interest. Best part is, you can get your funds within seven to 10 days.