Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects.
If you’re dealing with the probate process after a loved one’s death, you may have seen talk of inheritance loans during your research. These loans give you an advance on your inheritance, using the estate as collateral while you wait for the probate process to finalize. But what can you use the funds for, and are they worth your while?
Rockpoint Probate Funding, a trusted inheritance cash advance service, provides a few real-life applications for how you can use inheritance loans in estate management.
Pay for Funeral Costs
Funerals often take place within one week of a person’s death. Whether your loved one had a will, a revocable trust, or another estate planning tool in place, your family likely won’t gain the funds from the estate distribution before the funeral. You’ll need to pay for these expenses out of pocket, and you could wait months to reimburse yourself with the decedent’s assets.
An inheritance advance helps you cover funeral and celebration of life costs. Knowing that this money is coming can give you peace of mind about purchasing a high-quality casket and using a reputable funeral home. Your inheritance loan will reimburse you for the money spent on the funeral, relieving some of your stress during this arduous time.
Settle the Decedent’s Debts
Within the first weeks and months after your loved one’s death, you’ll likely begin receiving notices from creditors about overdue payments. You can pay off your loved one’s debt with their assets — once you receive them. However, probate often takes upwards of a year to finalize, depending on how executors handle estate property. In the meantime, you may not have access to any of your loved one’s funds.
Creditors have around six months to file a claim against your loved one’s estate. With an inheritance loan, when those claims arise, you’ll already have the money to pay off your loved one’s debts.
You won’t need to haggle with creditors or face mountains of letters and phone calls as they attempt to secure their payments. You can also avoid owing additional interest by paying these debts immediately.
Cover End-of-Life Medical Bills
If your loved one was ill for some time before their death, they may have accumulated steep medical bills. Hospital stays, hospice care, at-home medical equipment, medications, and numerous other expenses can all add up quickly to produce tens or hundreds of thousands of dollars in medical debt.
Again, you can use their assets to help settle some of these bills, but you likely won’t have access to those funds for several months. An inheritance loan can allow you to pay off some of your loved one’s bills without needing to take money from your personal bank account.
Bridge Financial Gaps While Adapting to Loss of Income
If your loved one who passed away provided financial support to your family, it may take time to adjust to this loss of income. Only about 52% of Americans have life insurance. Even if your loved one did, you may have to wait a few months before you receive a payout, and you’ll likely face significant expenses.
Your inheritance loan can help you bridge financial gaps while you adapt to your new economic circumstances without your loved one’s contribution. You can use it to cover life expenses like housing, groceries, utilities, insurance, and any other costs you face on a normal day.
Gain Funds During Complicated Probate Processes
Has someone contested the will? Did the decedent have multiple contradictory estate planning documents? These and several other matters can complicate the probate process, prolonging your inheritance. You may have to wait over a year to receive your check.
With an inheritance loan, you can secure your inheritance now rather than waiting months or years for the probate process to finish. You’ll experience peace of mind regardless of the issues complicating the process, as you’ll already have your money in hand.
Pay Property Maintenance Expenses
If you’re the state executor, you could be responsible for the maintenance of the decedent’s property. Such expenses may include:
- Property taxes
- Homeowners’ insurance
- Utilities
- Home maintenance (lawn mowing, gutter cleaning, etc.)
While you can often cover these expenses out of the estate, you may not yet have access to those funds. And even if you plan to sell the house eventually, you may not be able to until after probate, which makes you responsible for the home in the meantime.
After loan approval, you can begin paying these maintenance costs and avoid any fees or interest rates that could raise your expenses if you delay payment.
Cover Estate Taxes Up Front
You may owe taxes from your loved one’s estate, but you might not have the funds to pay them out of pocket before your inheritance settles. With an inheritance loan, you don’t need to worry about affording these taxes.
For example, you may owe estate taxes if the estate is of high value. You could also owe inheritance tax if you live in a state that charges it, such as Kentucky, Iowa, Maryland, Nebraska, or Pennsylvania.
Seek Inheritance Funding From Rockpoint Probate Funding Today
Managing an estate and navigating probate after a loved one’s death comes with numerous expenses that can be challenging to pay out of pocket. With an inheritance loan, you can pay off debts and creditors and afford other costs while you grieve your loved one’s death.
At Rockpoint Probate Funding, we simplify securing an inheritance loan with a three-step process. Contact us today at 888-263-8588 for a free evaluation.
