|
Inheritance
Brokering FAQ
Here you will find
answers to the most commonly asked questions as explained by our primary
funding company. If you have any other questions, please feel free
to contact us and ask. Please email a broker directly at broker@estateanswers.com Inheritance
FAQ 1:
Who is eligible to receive a cash advance from IFC?
A: An heir who will be inheriting at least
$17,000 from a probate which is already open or is currently being
opened; or a beneficiary of a trust who will be receiving at least
$17,000 in distribution(s) from the trust within three years. The trust
instrument must not limit the beneficiary's right to assign an interest
in future trust distributions (a so-called "spendthrift").
Inheritance
FAQ
2:
What do you receive in return for the cash advance?
A: In return for a present cash payment
from us, the heir or beneficiary sells to (technically, "assigns
to") us the right to receive a fixed amount of money out of
the heir or beneficiary's share of the estate or trust.
Inheritance FAQ
3: When do you get
paid?
A: We are paid
directly from the estate or trust upon distribution. Funds not needed to
satisfy the assignment are distributed directly to the heir or
beneficiary.
Inheritance FAQ
4:
Are there any application fees?
A: No. Fees are charged only for
funded deals, and are deducted from the advance.
Inheritance FAQ
5:
Will credit problems prevent an heir from getting an advance?
A: We obtain a credit report in
preparing a case for funding, primarily to determine that there are no
judgments, child support or bankruptcy proceedings that might interfere
with payment of the assignment. A poor credit record alone, including
delinquencies, discharges in bankruptcy, foreclosures, etc., will
generally not prevent an heir or beneficiary from receiving an advance.
Inheritance FAQ
6:
Are monthly payments required to repay the advance?
A: No. We are paid directly and
in full from the estate or trust at the time distribution is authorized.
Inheritance FAQ
7:
What if there are insufficient funds in the estate or trust to pay ?
A: This is one of the risks we
assume when accepting an assignment from an heir or trust beneficiary.
The heir or beneficiary who gives true information on the application
and honors the assignment agreement has no personal liability for
payment of the advance.
Inheritance FAQ
8:
What happens if a previously unknown creditor makes a claim on the
estate?
A: This is one of the ways a trust
or estate may end up with insufficient funds to pay in full, and it is a
risk we assume. We can only receive those distributions from
the probate or trust that are due to the heir or beneficiary. Medical
claims arising from the last illness are a major concern. We absorb
the loss and has no recourse to the heir? Unless the heir or beneficiary
was aware of the claim(s) and failed to disclose it in the application
process.
Inheritance
FAQ
9:
Can an heir qualify for an advance even if there is no will?
A:
If a person passes away and does not leave a will, then that person's
estate is said to be intestate. Every state in the US has different laws
governing an intestate estate. The only way to be certain that an heir
is inheriting from an intestate estate is to contact the estate attorney
and determine what portion, if any, they are entitled to under the law
of the state where the decedent resided.
Inheritance FAQ
10: What happens if
the distribution of the estate is delayed?
A: We must wait until the
estate or trust is ready to distribute. There is no recourse to the
funded heir for any delays in the distribution. This is another one of
the risks we assume.
Inheritance FAQ
11:
Are there any geographic limitations on funding?
A: No, but most advances are to heirs or
beneficiaries here in the United States. Advances based on estates in
other countries are considered only in very limited circumstances and
require detailed, reliable information about the estate and full
cooperation from the estate attorney.
Inheritance FAQ
12:
What if the probate is in a different state?
A: It is common for the heirs of an
estate to reside in a state different from the deceased's state. This
rarely causes a difficulty.
Inheritance FAQ
13:
What are the criteria that determine the cost of an advance?
A: The size of the advance,
complexity of the estate or trust, and the estimated time to
distribution are the major factors affecting pricing.
Inheritance FAQ
14:
Are there minimums and maximums for cash advanced to an heir or trust
beneficiary?
A: Advances normally range from
$5,000 to $100,000. As a rough rule of thumb, assume the advance cannot
exceed 30% of an heir's expected distribution from an estate or trust.
Inheritance FAQ
15:
What steps need to be taken to consider funding a transaction?
A: Fill out a short form called an
Heir's Information Summary. Then send the completed form, together with
copies of personal identification and relevant probate or trust
documents, to the extent you have them available.
Inheritance
FAQ
16:
Are there any restrictions on obtaining a cash advance on my trust?
A: Many trusts contain a clause that
is referred to as a "spendthrift provision." This clause
protects you, as a beneficiary, from having creditors attach themselves
to your share of the trust. Unfortunately, the clause also prohibits you
from voluntarily assigning your interest to a third party which is
exactly how we are able to provide cash advances on trusts. We
are more than happy to review your trust to determine if it contains a
spendthrift provision. If you wish to review it yourself, you should
look for a section that contains anything similar to the following:
Spendthrift Provision
"No interest of any beneficiary in the principal or income of any
Trust created under this instrument shall be transferable by voluntary
assignment, anticipated, assigned, alienated, encumbered, or
hypothecated, and, to the extent permissible by law, shall be free
from execution, attachment, bankruptcy and other procedures for the
satisfaction of creditors' claims or be subject to legal process
before actual receipt by the beneficiary."
Inheritance
FAQ
17:
Who should I contact for additional information?
A: For questions, email a
broker directly at broker@estateanswers.com
To get cash from an existing Note you own visit:
www.sellyournotesonline.com
Estate
Answers
|
