Here’s An Opinion On:
Submitted by: Simon Volkov
Cash for inheritance refers to a financing method where inheritance property rights are sold in exchange for lump sum cash. There are many reasons to sell, but the most common is when property is suspended in probate for long periods of time.
Entering into cash for inheritance agreements is an important decision, so it’s best to conduct research to determine if this is the best financial strategy. The first consideration is the depreciation of value for property rights exchange.
Funding sources do not pay face value for inheritance property. They assume considerable risk when buying rights to probated inheritance. A lot of things can go wrong in probate that requires the sale of estate assets. If the process is prolonged, property values can depreciate.
Due to depreciation factors and the length of time it takes for probate to settle, funding sources typically charge between 25- and 40-percent of the appraised value. If Uncle Bob leaves a collection of coins valued at $50,000, heirs would receive around $30,000 in upfront cash. However, they might be taxed on the full $50k.
Once heirs sell property rights for cash, the deal is complete on their end. Assignment of property rights is filed through probate court and once the estate settles the property is distributed to the funding source.
The first step in selling probated gifts is to locate a cash advance provider. This could be a probate cash company, private investor, or investment group. The process varies, but most sources require documentation to verify entitlement to inheritance, such as the last Will or a certified statement from the estate’s personal representative.
Heirs typically must undergo a credit check to determine if they have liens or judgments against them that could interfere with property transfers. Sources often shy away from those who are in the midst of personal bankruptcy or have outstanding taxes, child support, or spousal alimony.
Funding sources may impose a minimum limit for cash advances. Many prefer assets to be valued over $10,000 and are more apt to provide funds when inheritance gifts consist of financial portfolios or real estate.
The process for inheritance funding can take a few days to a few weeks. Once funds are distributed, heirs can use the money for whatever purpose they desire. However, when selling inheritance rights it is best to use money for something life improving.
Spending inheritance cash frivolously is counterproductive. It can be beneficial to realize the decedent worked hard to acquire assets they have passed along to relatives. They bequeathed assets in hopes of making the lives of their loved ones better. It is meaningless to waste probate cash on material things. Instead, make a plan to invest in the future so that you can pass gifts along to your loved ones.
It is wise to consult with a probate lawyer prior to seeking out cash for inheritance funding. It is also wise to conduct research to locate funding sources that provide the highest offer for inheritance gifts. Take time to calculate the risks and rewards before signing away property rights to minimize risks.
About the Author: Simon Volkov is a real estate investor who specializes in probate liquidation and
cash for inheritance
advances. He is currently buying probate real estate located in SoCal, Arizona, Washington, and Nevada. Learn more about selling probated inheritance assets at
SimonVolkov.com
.
Source:
isnare.com
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